Rental market for high-end income properties

**RogerC** · 10-05-2009, 12:18 PM

I own a 1.25 acre property in the foothills of the Estrella Mountains just outside Phoenix. The lot sits up high on a hill and is surrounded by beautiful mountain views 360 degrees around. As the adjacent properties on 3 sides cannot be built on, it would be a beautiful, private location for an up-scale home.

I'm considering relocating to another state within the next 6 months, but some day might like to retire back in the Phoenix area and live on the property.

With the current low interest rates and building costs relatively inexpensive, it seems like a good time to build. I'm considering building a nice home in the range of 4500 sq ft on the property and renting it out for the next 8-10 years. If my preliminary estimates are accurate, I'll have a mortgage of around $2500.

Can anyone with experience in the rental market give me their thoughts on the current rent-ability of a property like this? Also, where might I find data on the Phoenix area rental market? Thanks!

**Hollywood Landlord** · 10-06-2009, 08:09 PM

It sounds like a great plan in theory... just whether or not you can pull it off has to be determined...

The best place for real rental values is Craigslist. However, it sounds like you have a unique situation and you might not find anything comparable to what you are looking to do. It would be worth a free look.

You could also try a realtor who is familiar with the area to give you their best guess on what you could rent it for, but understand they will be guesstimating at the very least... it will depend on the number of bedrooms, who is looking to rent and all other kinds of unforeseeable variables.

Certainly, if you can afford to take a loss (and you need to figure that out for yourself) it still might be a good time to build... the bargaining can be done.

**RogerC** · 10-07-2009, 04:08 AM

Hollywood, Thanks for the advice.

I checked Craigslist and I do find properties for rent in the $3k-$4k/mo range. Now, the question is; are they renting? I will contact a Realtor to get an opinion from someone local in the industry.

I really believe this would be a wonderful property for a unique rentor. Not long after I purchased the land for $210k, I was offered $340k for it and I don't even have it listed for sale. Friends tell me I was crazy for not selling, but I just love the property and want to live on it someday.

**Matthew 10001** · 10-07-2009, 07:47 PM

In markets that dip there is always high end and low end.... but he most that is effect is the middle class

Matt

**RogerC** · 10-08-2009, 04:27 AM

Thanks Matthew 10001,

I understand your post to mean, in this down economy, the extreme higher and lower end rentals are probably not effected all that much. Do you happen to know where I might find data about this?

**Matthew 10001** · 10-08-2009, 01:17 PM

well you pretty much have to find a market annalist....
to become a real estate investor is a long road...

I recommend partnering with someone that can help....

If you are intrested we can speak about doing some mentoring with you...

I do two phone interviews to see if we can work together....

there is no charge... we just split the deals...

Let me know.

Matthew
Real estate investor