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Phoenix Real Estate and Homes for Sale | Jonathan Dalton, Realty ONE Group – (602) 502-9693

Jonathan Dalton
REALTOR
ePro, SFR
602-502-9693

Investing

Phoenix Real Estate – The Land of Investors

If there’s any theme that dominates my observations here, it is the need for perspective. Everything looks different in the reflected light of the heat of the moment; only in taking a step back can we get any sense of what’s really taking place. About a month ago, the Arizona Republic published an article discussing the impact investors have had on the Phoenix Real Estate market. The primary takeaways … Investors are buying a ton of homes out here. And not just the folks with one or two investment homes, or even a dozen. We’re talking large hedge funds snapping […]

How to Describe the Phoenix Real Estate Market in One Word

Unstable. That’s about it, at least until the market has processed fully the continuing changes wrought by the bubble, the collapse and the nascent recovery. And that’s not going to happen for a while yet, judging by news from other quarters. Word out of Northern California, courtesy of Reuters with a hat tip to the incomparable Katie Cosner, is a large hedge fund is looking to sell off its portfolio of foreclosed homes … values are up and the fund managers see a profitable exit. Over the past week I’ve been working on mailing lists of out-of-town investors who own […]

Phoenix Real Estate Investment Primer – Cap Rates, Part Deux

Yesterday, we talked about how to calculate the cap rate – a very, very basic figure that can help investors compare one property to another on an apples to apples basis. Now, let me tell you why you should be a bit judicious in your use of cap rate as an investment measure. On single family detached homes, cap rate works best when the homes being compared are relatively similar. Since the Phoenix real estate market is dominated by tract homes, the type of home involved – build quality, construction standards, etc. – are roughly the same across the board. […]

Phoenix Real Estate Investment Primer – Cap Rate

Which piece of Phoenix real estate makes more sense from an investment standpoint – the $100,000 house collecting $800 in monthly rent or the $120,000 house collecting $900 in rent? If you’re looking for a rather simple, rather simplistic method of comparing possible investments, one way to go is to compare the cap rates of different properties. It’s not the end-all be-all measure by any stretch, but it’s enough for making a comparison at a relatively quick glance. To determine the cap rate of a property, first you need to calculate the Net Operating Income, or NOI … NOI = […]

Realistic Investment Expectations in Phoenix

Received an e-mail yesterday from an investor looking for property here in the Phoenix area. Unlike many of the weekend warriors who occasionally drop me a line, this individual was specific in his goals and desires, which was immensely beneficial. The only real problem was the timing, as what he’s looking for doesn’t exist here … Looking for best deal ! A purchase well below the valuation of a licensed valuer would be my preference. Unfortunately, the best deals where homes can be had for less than appraised value – at least in the sub $175k range – only are […]

Investing in Phoenix Real Estate and Some Basic Math

Let’s suppose you’ve got $80,000 burning a hole in your bank account, earning a whopping .0000005 percent (give or take a couple of zeroes) in interest and you’re thinking about investing that money in real estate. Being adverse to carrying a mortgage, you decide to use the entire $80,000 to purchase a house free and clear. Simple enough? Well … First off, you’ve got to find a place which, in the current market, is damn hard to do. Having the ability to make a cash offer is a great thing but still leaves you in a pile of offers with […]

Is Your Phoenix Investment Property Giving You a Sufficient Return?

Text from a letter I’m sending out this weekend to investor owners: IF YOUR PHOENIX AREA INVESTMENT PROPERTY HAS YOU ON TRACK FOR THE RETIREMENT YOU WANT, STOP READING NOW. If not … consider for a moment how else you could have your money invested – either utilizing a 1031 like-kind exchange and trading up to a newer home in the Valley or moving outside Arizona to markets where the rent-to-price ratio may pencil more favorably (and its possible picking up two strategically leveraged, cash flow properties for the price of your one in the trade.) We arein the midst […]

Accidental Landlords – Take Note

It’s very rare that I do this, so rare in fact that I can’t remember the last time I did. But I urge you, dear readers, to share this post with the people you know who may be in this particular situation. And I almost guarantee that if you live here in the Valley that you know of at least one person. The symptoms usually involve moving either by choice or necessity in the past handful of years and the utterance of some version of “well, I’m not going to give my home away.” They have been in our midst […]

Real Estate Investors: Go Away, For Your Own Sake

Assuming you didn’t take my advice based solely on the headline, here’s the line of thought for today inspired by an e-mail I sent one of my investors on Monday: In this market, with inventory as thin as it is, about the only way to secure a home is to overpay for it. There are no bargains out there right now. Everything – everything – new to the market is going to be a multiple offer, highest and best scenario where the highest cash offer will win. And the ones on the market longer, such as this one, are going to be […]

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