Hi, all. I live in Phoenix where the housing market has gone through the roof in terms of price. I am new to investing and want to begin investing. All of the properties I have seen so far appear to be alligators. Is it probable that a good priced property that will generate postive cash flow is still out there given this market? Are rents in the Phoenix area going to trend up so that buying an alligator could work out? IF the answer is no to the above, then maybe this is just not something I should be doing.
thanks
Bryan
I own 3 in phoenix area and cash flow on two the other one I just bought I will let you know
I’m the Phoenix area right now as well, another beginner who is unsure about the situation here.
I’m a newbie and in the Phoenix area too. Have any of you attended the REI club meetings? How are you networking? I have some leads from newspaper ads but I’m kind of stuck and afraid to take the “leap”!
I’m not actually doing anything but reading at the moment. Well, techically I’m saving up some start up cash and fixing my credit while I go to school. I’m looking to start up maybe this spring or so.
Yesterday is HISTORY tomorrow is MYSTERY
TODAY IS A GIFT THAT IS WHY IT IS CALLED THE PRESENT
WHAT ARE YOU GOING TO GET DONE TODAY?
Lol, I’m actually busy with some other creative business ideas - but I know what you’re saying, there’s no time like the present.
Reo, I’ve been reading you for quite a while now and think you give great tips/advice. My concerns are the same as those of other people here, and I know you’ve read them a thousand times.
I have some cash, minimal debt and great credit. I’ve been reading and researching but I’m still afraid to take the leap. I’m single and no kids, so the risk would affect only and…I am desperate to leave a well-paying, miserable job.
Any thoughts?
That is a loaded question! It is that FEAR that will keep you right where you are at today! Look at it like this YOUR BOSS loves you to come to work he pays you portion of what he makes off of you to come to work! There are no two ways about it.
So you pretty much have two choices
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Stay where you are at and make a reasonable living. And retire knowing that you have a secure retirement (maybe as long as you are not depending on social security)
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Get into REI and make a wonderful life…
There is a huge difference between making a living and making a life!!!
“Are rents in the Phoenix area going to trend up so that buying an alligator could work out?”
Some areas are beginning to experience rising rents for the 1st time in 4 years.
Phoenix may well be one of them. It’ll depend greatly on prices, affordability, and interest rates.
The more people priced out of a given market…the more people will be competing for units to rent.
Supply vs. Demand
As a frequent traveller to Phoenix area I have seen the cost of living rise significantly in the last 4 years. Prices for homes have gone up significantly and the locals are livid with outside investors. There are lots of things going on in Phoenix. I don’t see prices plummeting or the cost of living going down significantly. Major employers such as eBay, Google, and Intel have recently announced plans to build new centers there. Intel is building their 3rd plant in the area. Phoenix has in the past and is continuing to attract major business to the area and incomes are rising as a result. With higher income comes higher cost of living. While rents have been slow to rise in the area, I think as the cost of buying a house becomes prohibitive for more the rents will rise.
I have an alligator in AZ, but not in Phoenix. However, he eats small fish and I am reimbursed at the end of the year by Uncle Sam. I have began to see rents rise in my area already. By Summer next year I anticipate that my alligator will turn into a cash cow. If it doesn’t I will slaughter it and turn it into some alligator skinned boots.
thank you, all, especially Carlittle. Your post was quite humorous. I am closing on my first property at the end of Nov. I am really excited. This is going to be fun…a bit scary, but still fun. I wish us all well!