Peoria, AZ and Crystal Cove Rental Property Market Comparison January to September 2013 to 2015

Last week, we took a look at the Glendale rental market and the subdivision of Village Rose.

This week, we will take a look at the neighboring community of Peoria,AZ and the small subdivision of Crystal Creek.

Crystal Creek subdivision is located south of Grand Avenue and 83rd avenue.

All figures are taken from closed rental data from the MLS from 2013-2015.

We will focus on the rental homes that rented between January and September and break down the resulting rental data by year.The rental property data we look at from Peoria and Crystal Creek focuses on closed, unfurnished rental properties.

The rental market numbers in Peoria show growth in rental price and a steady drop in Peoria rental home inventory from 2013 to 2015. The chart below displays the details.

Overall, average rental property prices in both Peoria and Crystal Creek have increased during this 2013-2015 time period.  

Although our comparison sample size for Crystal cove is small, Average and Median days on market have both gone down here in over the last three years. We recently leased a property in Crystal Cove in less than a week.

However, the average rental home price gain in Peoria, AZ is only about 5%. This is much less than the average home price gain Valleywide during the same time frame. For details on Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory decrease is 27% in Peoria, AZ from 2013-2015 according to our Peoria rental market numbers chart.

Glendale, AZ and Village Rose Subdivision Rental Property Market Comparison January to September 2013 to 2015

This week we will take a look at the Glendale rental market and the subdivision in our focus will be Village Rose. 

Village Rose is a Glendale, AZ subdivision located east of 67th avenue and South of Cactus.

All figures are taken from closed rental data from the MLS from 2013-2015.

We will focus on the rental homes that rented between January and September and break down the resulting rental data by year.The rental property data we look at from Glendale and Village Rose focuses on closed, unfurnished rental properties.

The rental market numbers in Glendale and Village Rose in this study show decent gains as detailed below.

Overall, average rental property prices in both Glendale and Village Rose have increased during this 2013-2015 time period.  The average rental home price gain in Glendale, AZ is about 9% and the Village Rose subdivision are about 11% over these three years. 

Rental property inventory has decreased in both spots as well. The rental property inventory decrease on the ARMLS has been a substantial 36% in Glendale, AZ from 2013-2015.

Litchfield Park Makes TOP 10 Best Phoenix Suburbs!!!

With a population of a little over 5,000 people, Litchfield Park is the only city in the west valley of metro Phoenix to make it into the top 10 best phoenix suburbs list (according to MOVOTO).  It is a very small close knit community with tons of amenities and it is near Luke Air Force Base.  Litchfield Park also offers a wide variety of housing options from single family homes in community developments with home owner's associations to condos, apartments and single family homes on large lots without home owner's associations.  Litchfield Park also averages an unemployment rate of 3.7% which is lower than Phoenix's overall unemployment rate of 5.0%.  The wigwam resort also resides in Litchfield Park and offers many restaurants and golf courses for a staycation or for visitors. For more information about this quaint Phoenix suburb visit their visitor page at http://www.litchfield-park.org/

Follow @rpmwvphoenix

Is it the right time to buy an investment property in North Phoenix? - Updated analysis

Last week we took a look at a potential investment property in Phoenix and did a cost/return breakdown . This week we will continue our investment property analysis and focus on a North Phoenix property.

The property we are looking at today is for sale in the Phoenix subdivision of La Crescenta. La Crecenta is a condominium subdivision just north of the 101 at 7th Ave.

The property that we are looking at is at 421 W. Yukon Drive #2 . It is currently listed at $95,000. Let's take a look at the basics of a five year investment.

Sale price= $92,000 (you probably can get a 3% reduction off the list)

Turnover= $5,000 includes new paint and carpet

Marketing Costs= $400 for tenant placement services from RPM West Valley

Rent=$795 per month

Maintenance Reserve=$5,000

Property Specifics

Sq Ft 863

2 BDR 2 Bath

101 and 7th Ave. - RPM Property Owners have had good results with tenant duration and pay history in this subdivision.

Ok, so you plunk down $103,000 which includes the sale price, a pretty decent turnover budget and hiring a company to lease it for you. At this price, it should conservatively rent in a month and you have a pretty high percentage of keeping it occupied for at least two years (just a bit less than the average tenancy projection for this location).

First two year return= $795*13=$10335/2 = $5,168 - $389 tax (annual) - $300 insurance (annual) $1620 HOA fees (annual) =  = 2.7% ROI annualized

Next three years= $850 *35 (one month to re-rent and realistic rent increase) -$1400 (turnover & marketing costs from first tenants and to re-rent to second tenancy) = $28350 - $1167 taxes (3 yrs) - $1000 insurance (3 yrs)- $4860 3 yr HOA fees with projected increase = $21,323

Annualized return pre-sale =$24,176 revenue /5  yrs / $103000 outlay = 4.6% ROI per year.

So lets say you sell the home after 5 years, there is  good chance it will increase in value. Let's assume the price will go up 2% per year (a very conservative estimate judging by today's market figs).  You will get $99,500 at the end.

5 year Revenue-Expenses = ($7,500 sales gain + $24,176)= $31,676

Initial Expenses=  $103,000 initial outlay 

=30.7% ROI

This assumes your 5K maintenance reserve will be exhausted over the five year's of tenancy and does not include any tax advantages or disadvantages. The market rent and appreciation numbers or conservative and based on present and historical facts of the Phoenix rental market.

There are some interesting things to note about this investment property example in La Crescenta compared to the example from last week in the Pines. Although you are paying much more per sq. ft and more per sq. foot in relation to the rent for this one, you get a break in the taxes and the HOA costs as well as greater projected appreciation so that the investment return is just a bit better.