Coldwater Springs Bargains on January 20, 2009

These are all lender-owned homes within the golf course community of Coldwater Springs in Avondale. These homes should rent for $950 - $1150, depending on the size. All of them should sell for less than $100,000.



These are premium homes, in the sense that they can both attract premium tenants and sell for a premium price on resale. Even so, these homes should easily qualify for investor loans under FannieMae/FreddieMac guidelines. With a 25% down payment, and assuming rents no higher than 75% of the prevailing market rents, these homes should still be cash-flow positive.

No one can predict when the Phoenix real estate market will return to a state of positive appreciation. But since rental homes in the Valley of the Sun are cash-flow positive in the most pessimistic scenarios, the properties should easily self-amortize under a buy-and-hold strategy.