Phoenix, AZ, is a beautiful city with plenty of opportunities for real estate investors. It’s a thriving city centrally located in the state, and over 1.6 million people live there. It’s full of sunshine, plenty of activities, and great amenities. The economy is thriving, and many people choose to relocate to the area, especially if they don’t love winter weather. There’s always something to do and see. Real estate investors love purchasing MULTIfamily properties in the city due to the lifestyle it affords them and the perks of owning a Phoenix duplex.
Why buy a Phoenix Duplex?
Buying a duplex in Phoenix is an excellent investment for a number of reasons. With any investment property, you want to find one that provides you with excellent cash flow that covers your own rent or bills. They are a relatively low-risk option and a great way to dip your toes into the world of becoming a landlord. You can easily live in one unit and rent out the other, or you can rent out both for a bigger profit. They are not a guaranteed success and will require plenty of hard work, but you can continue to grow your investment portfolio based on your profits if you get into the right property.
Do your research.
There are plenty of resources available on the topic of real estate investing, and you’ll want to find out some of the best tips, advice, and facts about what you’re getting yourself into. There are plenty of strategies and ways to go about investing, and you want to ensure you’re getting a great deal on your Phoenix duplex. Finding reputable websites, books, or listening to podcasts by experts in real estate investing can help you gather all the information you need to make an informed decision. You can discuss your ideas and intentions with your realtor as well.
Get pre-approved for your mortgage.
Before you start house-hunting, it’s essential to know what you can afford and your likelihood of approval. Beginning your investment journey without having your finances in order isn’t a great plan. You may be able to get a referral to a great mortgage broker from a friend or family or even your new realtor.
Hire a realtor.
When it comes to choosing your realtor, it goes way beyond just finding you a home to buy and facilitate the documents’ signing. You can do your own research when trying to find a property, but a realtor has connections and a network to leverage when searching for your Phoenix duplex. It would be best to look for knowledge and experience in a realtor while being personable and someone you could see yourself working with. They should have expertise in dealing with MULTIfamily properties and be quick to respond to any of your inquiries. They should be eager to help you purchase your new property and ready to work hard for you. You can find a great realtor by checking out Google reviews or asking friends and family for references. Still, you want to find someone experienced in Phoenix duplexes.
Be clear about what you want.
Once you’ve hired your realtor and you’re ready to start searching for your new duplex, you will want to be clear about what you’re looking for. Your realtor will be on the hunt for properties that meet all your needs, so you’ll need to define all your non-negotiables and your wants. It would be best if you had a pre-approval on a mortgage, so you know how much you can spend. Having your ideal neighborhoods indicated helps narrow down your search. You can also define what kind of condition you’d like the property to be in. If you’re looking for a fixer-upper, you can ask for that. If you’d like it to be pristine, you can ask for that as well. Having this critical discussion with your realtor is key to getting what you want in your new home.
Begin the search.
Once you’re all clear on what you want, you can begin searching for your new Phoenix duplex. Your realtor will be collecting options from MLS, their connections, and their network, and you can conduct your own research as well. Your realtor is only human after all, and there’s the potential they’ve missed one you may be interested in. Using free real estate websites could lead you to find inaccurate information, but if you find something you like, send it to your realtor.
Do more research.
Once you start finding properties you like, you’ll want to analyze if they are a good deal. Try looking at similar rental properties in the city to determine what you could potentially rent them out for and how much income you could be bringing in based on the condition and location.
Make an offer.
If you find a property you love that meets most, if not all, of your criteria, you can make an offer. Your realtor should handle most of the work, but you’ll need to be there for the paperwork. Your offer will either be rejected, accepted or countered, which is the most likely. There will probably be some negotiating, and if you can reach an agreement, your offer will be accepted. If not, you move on and try to find another property.
Time for an inspection.
Once you’ve come to mutual acceptance with the seller, you will go through the property with a fine-tooth comb. You’ll need an inspection to be approved for your mortgage, so get them in as soon as possible to make sure the property doesn’t have any significant issues. Typically this will run about $500 or so. Once you see the results of the inspection, you can decide if you’d like to proceed with the sale or not. If there are some significant problems, you can use them to negotiate a better price, since they’ll cost you time and money to fix.
Time to close.
Now that you’re ready to close, the excitement sets in. The duplex is finally yours! Your realtor will assist you with any other steps at this point, and you’ll be a homeowner.
Rent your units.
Whether you decide to keep one unit for yourself and rent one out or rent them both, you are now officially a landlord. You can hire a property manager if you like. Otherwise, you’re in charge now.