Q: Should an Investor Buy a Condo or a Home? A: Yes

OK. As you can see from the title, I'm being a little silly.

I'm often asked these questions, "What should I buy? Should I buy a condo or a home?"

The answer, in this market, is:

...an investor should by something- as long as the investment can return revenue in a set time period.

If an investor wants to rent a property here are a few things to consider:

• Who is my renter?
• What are current rents in the area?
• Will I be able to sell the property?

Location is everything. It's probably best to have a target location in mind. If someone wants to house a student, a condo near Arizona State University would be a great investment- as long as the numbers work. If someone wants to rent to families- a single family home is usually a good fit. 

What's the target rent? Investors quickly notice one thing. Smaller homes usually have a higher rent price/square foot than larger homes. Each area has a sweet spot- make sure your agent knows the sweet spot. 

How long will you rent out? Some will only want to rent for a short time. Many are renting homes during the lull knowing that property values will probably increase in the coming years. Make sure your property not only looks "rentable" but also try to buy properties that will offer an easy-out through resale. Your agent should have tips on what works for resale.

Current market conditions are optimal for today's investor. Prices are low... low enough to make the math work. In other words, people are more able to find properties that can generate positive cash flow. During the boom, this was a more difficult task.

For those who wish to find investment properties in Arizona and elsewhere, give me a call or visit my website:

Chuck Willman - 480.292.0600

www.azvest.com