{"id":2793,"date":"2008-03-18T05:44:59","date_gmt":"2008-03-18T12:44:59","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2793"},"modified":"2008-03-17T21:07:58","modified_gmt":"2008-03-18T04:07:58","slug":"your-rental-home-in-phoenix-will-generate-positive-cash-flow-but-will-it-appreciate-significantly-in-the-coming-years","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2793\/your-rental-home-in-phoenix-will-generate-positive-cash-flow-but-will-it-appreciate-significantly-in-the-coming-years\/","title":{"rendered":"Your rental home in Phoenix will generate positive cash flow — but will it appreciate significantly in the coming years?"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>):<\/p>\n

 
Your rental home in Phoenix will generate positive cash flow — but will it appreciate significantly in the coming years?<\/b><\/p>\n

It’s still a buyer’s market out there, but is it an investor’s market? The answer to that turns on three other issues: Vacancies, values and cash flows.<\/p>\n

Lenders get all the blame for the downturn in home values, but that’s not entirely fair. Another big share of the blame goes to the builders, who built new homes far beyond any reasonable estimate of demand. So, even though folks who might have gotten home loans two or three years ago are stuck renting for a while longer, is there enough tenant demand to keep a rental home profitably occupied?<\/p>\n

Even if there is, will the prices of Valley homes continue their decline? This seems likely, at least in the near term. There is still a tremendous amount of inventory in the MLS system. The best bargains, though, are houses that are in the foreclosure process. These can be hard to wrest away from lenders, but they may be a leading indicator of the bottom of the market.<\/p>\n

More significantly, will a rental purchased at a bargain price throw off positive cash flow? Unequivocally: Yes. To qualify for an investor loan, you will need to have great credit and a 20% down payment. But interest rates are still very low, and rents have held up just fine through the downturn.<\/p>\n

So the big bet boils down to this one question: If you buy a rental home in the Phoenix market now, will you be able to sell it at a significant profit eight or ten years from now?<\/p>\n

Alas, no one can predict the future. If you pick the right rental home — good house, good location, good orientation, easy access to schools, playgrounds, shopping, freeways and jobs — it should rent well now and resell well later. If you get the right loan and don’t refinance, your income property will actually produce income — which means it will pay for itself and still throw off a Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link):  Your rental home in Phoenix will generate positive cash flow — but will it appreciate significantly in the coming years? It’s still a buyer’s market out there, but is it an investor’s market? The answer to that turns on three other issues: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,6,5],"tags":[],"class_list":{"0":"post-2793","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3253,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3253\/investors-are-coming-back-to-the-phoenix-rental-home-market-and-with-the-right-business-plan-theyll-make-money\/","url_meta":{"origin":2793,"position":0},"title":"Investors are coming back to the Phoenix rental home market — and with the right business plan they’ll make money","author":"Greg Swann","date":"June 21, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Investors are coming back to the Phoenix rental home market -- and with the right business plan they'll make money Rental home investors are coming back into the Phoenix real estate market, and this is a good\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17666,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17666\/bloodhounds-end-of-year-letter-to-our-rental-property-investors-thriving-by-surprise\/","url_meta":{"origin":2793,"position":1},"title":"Bloodhound\u2019s end-of-year letter to our rental-property investors: Thriving by\u00a0surprise.","author":"Greg Swann","date":"December 31, 2020","format":false,"excerpt":"I have four listings in the hopper, and the whole first quarter looks strong. So far, I am unable to rid myself of the NAR, but I'll be working on the problem as I go. I don't need ARMLS for rentals \u2013 Zillow alone is better for us \u2013 and\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/12\/jeff-w-8jWqx3fS0oI-unsplash-1-480x308.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10766,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10766\/are-the-uninformed-chatterboxes-in-your-area-insisting-that-the-real-estate-market-has-recovered-you-may-want-to-defer-the-celebration-even-so-this-could-be-the-golden-moment-for-investors-in-phoen\/","url_meta":{"origin":2793,"position":2},"title":"Are the uninformed chatterboxes in your area insisting that the real estate market has recovered? You may want to defer the celebration. Even so, this could be the golden moment for investors in Phoenix.","author":"Greg Swann","date":"January 5, 2010","format":false,"excerpt":"I've known for six months or more that there was a sweet spot on the horizon for investors and other highly-solvent buyers. That event was delayed by the first-time home-buyer's tax credit. Today's news about declines in the number of pending purchase contracts is a symptom of the market returning\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":405,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/405\/blogoff-post-28-timid-investor-lost-chance-for-large-rental-home-gain\/","url_meta":{"origin":2793,"position":3},"title":"Blogoff Post #28: Timid investor lost chance for large rental home gain . . .","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is from my Arizona Republic column, a sad story about an investor who let a small fear lead to a huge loss:In July 2004 I was working with a potential investor. She was prosperous and well qualified, and she was buying at a time when a nice rental home\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1972,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1972\/looking-for-a-bargain-priced-home-if-you-dont-flinch-the-seller-will\/","url_meta":{"origin":2793,"position":4},"title":"Looking for a bargain-priced home? If you don’t Flinch!, the seller will","author":"Greg Swann","date":"September 28, 2007","format":false,"excerpt":"This is my column this week from the Arizona Republic (permanent link): \u00a0Looking for a bargain-priced home? If you don't Flinch!, the seller will Let's talk a little bit about buying strategies. Last week's rate adjustments by the Federal Reserve Bank may have scared up a few buyers. I'm taking\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4045,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4045\/buy-low-sell-high-you-cant-sell-high-for-now-but-prices-are-low-enough-that-a-buy-and-hold-strategy-could-pay-off-handsomely\/","url_meta":{"origin":2793,"position":5},"title":"Buy low? Sell high? You can’t sell high for now, but prices are low enough that a buy-and-hold strategy could pay off handsomely","author":"Greg Swann","date":"August 23, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Buy low? Sell high? You can't sell high for now, but prices are low enough that a buy-and-hold strategy could pay off handsomely Last week I met with a potential real estate investor. 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