A few things every investor should know about arizona properties

Photo: Kevin Dooley

If you have some experience in the field of real estate, you probably know that Arizona is a state offering some incredible investment opportunities. However, even in an area where you can get excellent deals you need to do a thorough research before investing anything. For instance, Arizona is a relatively big state and buying a property in an area that is not attractive and doesn’t have any perspective is certainly not a good move even if the prices are incredibly low. In other words, with the right analysis you will avoid any risks. Now let’s highlight some of the most important things every investor should take into consideration.

First and foremost, it’s all about the location. You need to find a good location and luckily this is not a very difficult task when it comes to Arizona. As we said before, just because you’ve found a home in an urban area that is worth $30.000, this doesn’t mean that you have an excellent deal. Unfortunately, there are many inexperienced investors that make decision based only on the price of the property. The fact is that you must take special care of the trends. For instance, the prices of properties in the central and southwest parts of Arizona are increasing while the prices of the northeast part are dropping. This is the reason why so many people are interested in investments in Phoenix. However, if you are looking for a better deal we suggest scottsdale real estate. This real estate market is not as exploited as Phoenix real estate market although it has the same potential. This means that the prices are realistic and the potential is incredible. According to some statistics, Scottsdale is one of the best places to live not only in Arizona, but in the US too. It has very low crime rates, excellent schools, many parks, high-quality hospitals and it is close to few other important cities (including Phoenix) in Arizona.

Once you determine the location where you want to invest, you must select the property type. You can choose between small townhomes, big houses, condominiums, apartments etc. Of course, you should choose a type of property that is suitable to your overall real estate investment strategy. A duplex is ideal for those who want to invest in a building that will be rented and want to get good monthly rent. On the other hand, investing in a family home that needs to be renovated is great for investors who want to resell properties (fix and flip). It is crucial to determine the price that you will have to pay, check the expenses and monthly cash flow in order to determine the return of investment.

Of course, determining the market value is another very important element in this process. Even if you have some experience in this field, it is highly recommended to use the help of a real estate professional that is familiar with the area where you want to invest. There are many professional companies that can help you, but you must use the Internet to learn more about the companies you find interesting. There are websites where you can find automated valuation for the properties, which can be great for those who want to get an approximate value of some property. You can use them to create a short list of properties that are useful and after that you can contact a real estate expert.

Finally, if you are planning to invest in a property that will be rented, you should also research the rental market in Arizona.