NEW: AZ Investment Property Mistakes Series Goes Live

Click here to read the first article in our new investor mistake series - "Real Estate Investing Mistakes: What Went Wrong." The topic? Why square footage matters on a rental property.

Don't miss this great opportunity to increase revenue from your AZ investment portfolio.Subscribe now to get this week's second article in the series.

AZ Investment Property Appreciation: How to Choose A Neighborhood

Many factors impact how profitable an investment property is, but nothing has a more significant hit to its long-term value than appreciation. It is the #1 way to build wealth within your portfolio.

Selecting the right neighborhood may sound simple, but experienced investors realize that it is critical to get it right. Treating this carelessly impacts the maximum rent you can get on the property, the type of tenant you are most likely to put IN the property, and appreciation. Phoenix neighborhoods can be particularly difficult, because there are pockets of good and bad all over the Valley.

Here are a few savvy tips on choosing the right neighborhood from Noel Pulanco, Realtor® and Sales Manager at HomeLovers, one of Arizona's fastest growing real estate investment and property management companies. Read this newest article on HomeLovers.com for expertise that is sure to make YOUR portfolio more profitable.

HomeLovers Now On Trulia

When it comes to real estate advice, there is a lot of noise in the market place about grabbing up foreclosures. In all the excitement about "the next great deal", investors can't forget to educate themselves on the market at a deeper level.

HomeLovers is now on Trulia - answering Arizona investor questions, property management questions, and more.

Ask Us A Question
Want to hear about the Phoenix market, the nuances of how the economy is impacting rentals and vacancies? Don't hesitate to jump on Trulia (or post a comment on this blog) to get a dialogue going.

Be Trulia to yourself instead of impulsive - ask the right questions BEFORE you buy that potential investment property. We help far too many investors step out of poor choices, when a free consultation or dialogue on tools like Trulia before the purchase could have guided them into a great cash-flow opportunity from the beginning.

This week's activity on Trulia:

• I'm from out of town. How do I know how much rent to charge?
• Looking for a good area to buy my first four-plex rental property. How do I know which areas in Phoenix are good?
• I want to invest in a good cash-flow Phoenix property. How do I find an investor-savvy real estate agent?

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Getting a Great Deal on an Arizona Foreclosure

There is a new feeding frenzy developing in the Arizona housing market. The buzz words are auction, foreclosure, short sale, REO, etc., but the common theme is “deal”.

During the run up of 2004-2006, people were pretty much buying anything with a "for sale" sign and we all know how that story ended. Today I am seeing a similar lack of judgment with people rushing to buy any property that looks cheap.

I was on a great dive trip over Memorial Day weekend. Part of a dive trip is being on a small boat with a group of total strangers. Without fail, somebody on the boat reminds me that while anybody CAN wear a tiny string bikini or a Speedo, most people shouldn’t. Even if they found a store that was handing them out for free.

Don’t get me wrong... I love a deal as much as the next guy, as long as it is a deal on the right property. The wrong rental property, even at an amazing price, will never deliver an incredible result in terms of revenue. Just like that free Speedo, it may not be the best fit.

Even the cheapest foreclosure bargain can be an expensive investment mistake.

Before you run out shopping, do your homework (see a related article on "Choosing the Right Property"). Get clear about the long-term plan for your investments. Know what you expect the investment to do for you over time. Decide what type of tenants you want to attract. Then, make sure you understand what type of property will meet all those requirements.
If you don’t do your homework on the front end, your chances of ending up with the perfect property are remote.

We get calls from hundreds of investors looking for property management every month. The worse a property is, the more difficult it is to manage, so many of the people who call are tired of the hassle and regretting the purchase. Over 80% of the homes people bring to us are homes we would have never purchased or sold as an investment.

Having said that, there are incredible deals in every price range, so there is no reason to settle for the wrong home.

With the right tools, it is easy to crunch the inventory of available properties down to a short list of homes that will make a truly great investment. Once your list of potential purchases is limited to the great investments, you can shop for the best deal without compromising long term ROI. If you know how the planning, building, and managing phases of your investment impact each other and take action accordingly, you will be way ahead of the masses that are getting a great “deal” on bad investments.

You will also avoid being the investor equivalent of the big guy on the boat who really thinks his bright yellow Speedo makes him a sexy supermodel.