Avondale REOs: hot deals for investors

Home investors are constantly searching for hot deals. Although, the deffinition of "hot deals" is subjective, most investors have the followings in common when they search for their investment homes:

- Good location
- Good price
- Positive cash flows
- Good property condition

Let's take a closer look at these "hot deals" requirements to see if Avondale (AZ) is the right place for home investors.

1/ Location

Avondale, a city in Maricopa County, Arizona, is situated in a commercial corridor at the crossroads of Interstate 10 and the Loop 101. The city is also home of Phoenix International Raceway. Polulation has been growing rapidly and commercial developments in the area are numerous. University of Phoenix Stadium, Phoenix downtown and Sky Harbor International Airport are within a short driving distance. Visit Glendale's city website for more details.

2/ Home Price

Total 158 residential homes was sold in Avondale last month. The median home price was $145,000 - that is the same price level six years ago. In 2003, real estate market activity in greater Phoenix were still very slow. Many commercial developments you see today, such as auto dealers, regional shopping centers, hotels, office parks...were not in existence 5 years ago. Median home price in 2003 was higher than today's level (see table below).

Median home price dropped 34% in the last 12 monts and a total 44.5% since October 2005. According to the Avondale home sale statistic obtained from ARMLS (rivised 11/18/08), foreclosure sales are the highest in 2008. Currently, Avondale has 961 active listings and 342 of them are bank owned properties. Last month, 58 percent of all home sales are bank owned homes with median price of $133,200.

Avondale Median Home Price: Oct. 2000 - Oct. 2008

3/ Positive Cash Flows

You can find many bank owned homes in Avondale selling under $100,000. With 20% down paymement (may be less), your rental homes may bring in few hundreds a month. Because all interest payments on your mortgage are tax deductible, your return on investment may be higher than it first appears.

4/ Good property condition

More than 90 percent of all Avondale active listings are built after 1990. Homes are relatively new. Many bank owned homes need repairs, but I am sure you can find homes with move-in-ready condition. Visit www.arizona-bank-owned-homes.com to view bank owned homes in Avondale and more.

I have been searching hot deals in Avondale for my home investors in the last several months and realized that great investment opportunities truely exist. Homes are selling below construction costs and positive cash flows are now possible for rental homes.

Please contact Kellson Team with question for comments.