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Valley of the Sun Real Estate: Beyond the Obvious…

Are you tired of the same old real estate investments? Ready to break free from the mainstream and explore alternative opportunities in the Valley of the Sun? As a real estate agent, appraiser, and investor, I’m always on the lookout for unconventional avenues that offer exciting possibilities for my clients and myself. Join me as we delve into some intriguing trends emerging in Phoenix real estate, offering lucrative opportunities for all risk-takers including those who prefer more cautious approaches.

• Pinal County Boom

Pinal County is exploding! This fast-growing area is attracting residents with its affordable housing options and convenient access to Phoenix. Investors can find homes, condos, and other properties with attractive rental yields. With companies seeking cheaper land for development, Pinal County is poised for continued growth. Recently we posted a post about “Pinal County Population Blowing up 🤯 the fastest, study shows“!

• Condos for Long-Term Rentals

The condo market, especially the short-term rental segment, is undergoing a correction, creating opportunities for long-term investors. Consider well-priced condos in sought-after areas near universities such as ASU, or popular destinations like Old Town Scottsdale and Downtown Phoenix. Pinal County cities like Queen Creek, San Tan Valley, and Maricopa could also present interesting condo opportunities. For instance, I recently came across a condo for sale in North Phoenix through a wholesaler. It features Adobe exterior architecture, 2 bedrooms, 2.5 bathrooms, 1300 sq ft, and requires minimal upgrades like paint and carpet. The asking price is $249K, with comparables ranging from $310-333K and a potential monthly lease at $1900. Despite a prolonged selling process, the favorable numbers make it suitable for a quick flip or rental for positive cash flow. Several factors contribute to the condo market’s slow decline, including saturation from AirBnB rental homes, leading to disappointed homeowners facing fierce competition and seasonal fluctuations. Additionally, increasing condo inventory adds to market pressures. There’s word on the street that many owners did not achieve the expected profits during events like the Super Bowl in Glendale and the greatest show on grass (Waste Management Open Scottsdale TPC) to name a few. Nevertheless, this evolving landscape also offers opportunities for adaptation and growth over time.

Visit PhxCondosForSale.com for all your condo needs.

• Tempe Tear-Downs or Expansion:

Tempe, particularly near ASU and in pockets throughout, is witnessing a surge in tear-downs or expansions to add square footage. Savvy investors with a higher risk appetite can leverage this trend. By replacing older structures with new homes or simply adding square footage, significant profits await. Yet, this strategy demands substantial capital, architectural expertise or a skilled builder, and market acumen. Tempe boasts charming, older homes in distinct neighborhoods. Occasionally, a property fetches a premium effortlessly, often through complete flips. Opting for a complete teardown can yield similar results, with buyers undeterred by the location.

• Office Buildings: A Calculated Risk

The office building market faces uncertainty as loan payments come due. Banks may be looking to offload distressed properties at significant discounts. This could be an attractive option for experienced investors who can identify undervalued assets with long-term potential. However, careful due diligence is crucial in this market segment.

Recently Listed: Downtown Phoenix tower hits the market for $24 million. The 19-story, 256,682 SF = $94 Price Per SF building is located at 111 W. Monroe St – LoopNet listing

Thinking Outside the Box: This glimpse into the Valley of the Sun real estate market offers options for all investor profiles. Whether you’re a seasoned pro or just starting, there are opportunities to be found. Remember, thorough research and a solid understanding of the market are key to success in any real estate investment.

In conclusion, my final advice is to think long term and always run the numbers 2, 3, or 4 times over. All the investments mentioned above are geared towards the long term, including the teardown project which currently exceeds a year in duration. Should the market take a downturn, it’s essential to have contingency plans in place, such as converting the teardown into a rental property.

Ready to step outside the box and explore new horizons in real estate investment? Dive into our guide and discover the potential of alternative investment opportunities in Phoenix real estate. Your journey to unconventional success starts with a free buyer consultation.

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