We have really seen a drop in Real Estate prices in Phoenix, and this has created great opportunities for Real Estate Investors looking in the Phoenix investment property market. The best types of real estate investments in Phoenix are obviously a matter of personal preference. However, from a property management perspective, we thought we would offer these tips to keep in mind while investing in Phoenix rental properties.

PURCHASE PHOENIX INVESTMENT PROPERTY WITH MINIMUM THREE BEDROOMS AND TWO BATHS. You can obviously buy properties that have less and get them rented, and don't feel bad if you already own one with less, everything can be rented. But it is much easier to rent Phoenix investment properties with the above minimums. Three or more bedrooms allows people with tighter budgets to live together and pay the rent. Families that can afford the rent will often need more bedrooms (or must have them to meet occupancy standards). If you are looking at purchasing a 1 bedroom 1 bath property, you have a limited market and almost invariably a low ceiling on what you will be able to charge for rent. A three bedroom, two bath property provides a much larger pool of potential tenants.

HOUSES ARE EASIER TO RENT THAN CONDOS. This is just a simple trend we see in the marketplace. There are some advantages to putting condos into your Phoenix investment property mix, like avoiding dealing with common area maintenance, but even that comes at a price (Condo or HOA dues). There are many nice Condos for sale out there, however, you should probably budget for a little higher percentage of vacancy with Condos in your Phoenix Real Estate Investment portfolio.

LOCATION MATTERS. The phrase “Location, Location, Location” really applies to the best types of real estate investments in Phoenix. Our office supplies our clients with the zip codes with the highest volumes of rental traffic. Rental traffic equals decreased vacancies. Remember, vacancies are generally the biggest expense real estate investors experience.

LEVERAGE EXPERTISE. Real Property Management North Valley leverages 17 years of real estate investment experience in Phoenix, a national advertising network (to get your property rented fast), and we partner with a network of expert real estate agents in each area or zip code. Make sure you are using an agent to find your properties who has invested in Phoenix rental properties and who has data on where the best investments are. The best investment is not always the one you would like to live in yourself, but that will produce the highest return. Remember, “It's not personal, just business.”

Now, don't worry if you already have a one bedroom condo, in a lower rental traffic zip code. Those can still be rented quickly, with the right strategy. However, if your are looking to purchase more properties or your first property, and all other things are equal, consider these tips while creating your “Best Types of Real Estate Investments in Phoenix" strategy.