I’d rather be dead than invest in the Phoenix market. Unlike other desert cities such as Las Vegas, the Phoenix area has nearly UNLIMITED land to build out, which means supply will never become limited in future years. Rents in Phoenix generally are lower than other big cities, while the supply of rentals is usually a bit higher than other markets. Thats a recipe for disaster for investors. Unless an investor gets in with a sure thing positive cash flow, I wouldn’t walk..I’d RUN away from that market if I planned on holding the property long term.
What most of the articles don’t tell you is that the many of the so called “investors” are really institutional investors,ie, organizations that purchase in bulk directly from the banks and then flip. The banks can afford to sell in bulk at greatly reduced discounts….why ? Because the Feds are subsidizing the banks loses. You don’t like it ? Blame Obama.
