Houses for Sale in Arizona: Should You Invest?

As an investor, you are always looking for new opportunities to expand your portfolio. That’s why you should look at houses for sale in Arizona.

Table of Contents

1. 5 Factors Why Arizona Is a Great Location For Investing
2. What’s the Best Real Estate Investment Strategy in Arizona?
3. How to Find Houses for Sale in Arizona
4. Top 5 Cities in Arizona for Traditional Rentals
5. Top 5 Cities in Arizona for Airbnb Rentals
6. Recap

In this article, we will discuss the key reasons why any investor should consider buying investment properties in Arizona this 2022. Then, we will look into the cities with the best real estate rental data that have houses in Arizona for sale.

Lastly, we will look at some of the best investing tools all real estate investors should use when trying to make the best decisions for investment properties.

5 Factors Why Arizona Is a Great Location For Investing

As a real estate investor, you are always looking for new opportunities and locations for a successful property. The Arizona real estate market is looking like a great place for investors to purchase their next income property. Arizona houses for sale will generate a solid income for any real estate investor. Below are the real estate metrics for Arizona:

• Median Property Price: $523,873
• Average Price per Square Foot: $229
• Days on Market: 59
• Monthly Traditional Rental Income: $1,523
• Traditional Cash on Cash Return: 2.02%
• Traditional Cap Rate: 2.08%
• Price to Rent Ratio: 29%
• Monthly Airbnb Rental Income: $2,990
• Airbnb Cash on Cash Return: 4.17%
• Airbnb Cap Rate: 4.29%
• Airbnb Daily Rate: $173
• Airbnb Occupancy Rate: 53
• Walk Score: 38

Related: Arizona Real Estate Market Predictions for 2022

As you can see from the real estate statistics above, the Arizona housing market 2022 seems a good place for investing. Below we will also look into the top five reasons why Arizona is a great location for investing, besides the above real estate metrics.

1. Economic Growth

Over the past few years, the Arizona economy’s grown substantially, and it is expected to continue to grow into the next few years. Despite being at an all-time high, Arizona is still seeing economic growth.

Large corporations and small start-up businesses have been responsible for the growth in the local economy over the past few years. With a booming business environment, Arizona will continue to grow in the next few years.

With many businesses choosing to open headquarters in Arizona, it means more and more individuals and families will be looking to move to the state. It offers an excellent opportunity for real estate investors to make a substantial profit from their properties.

2. Interest Rates

As most people familiar with real estate know, interest rates play a significant part in the real estate market. It directly also impacts the houses for sale in Northern Arizona and everywhere else in the country. With interest rates that are favorable, more and more people will be looking to purchase properties.

With decent interest rates, it means buyers will be looking to buy all types of properties in the state. Investors can capitalize on such an opportunity by purchasing properties first, making some additionals and upgrades, then selling these properties for an even higher price. You will be sure to find a buyer for your Arizona real estate.

3. Demographics

Due to the employment opportunities opening up in Arizona, the state’s demographics are continuously changing. More and more families are moving to the area for employment opportunities. It also means that more and more people will want to find somewhere to live.

Investors can own successful real estate properties because of the number of people moving to the area looking for housing. Traditional rentals can be extremely profitable, especially traditional houses or larger spaces that families can live in. Additionally, fix-and-flip properties can be a profitable investment for individuals looking to purchase real estate themselves.

Related: How to Sell Your Fix and Flip Property Quickly

4. Lifestyle

Though Arizona is known for its sunny and warm year-round weather, it actually caters to all types of people. Different parts of the state are actually cooler because of their proximity to bodies of water. It means there is a city for everyone in Arizona. Investors can purchase a variety of properties in these different cities to reach a diverse range of people. Having a property for everyone will ensure you will find renters or buyers.

5. Affordability

Even though Arizona is a very desirable place to live, houses in Arizona are actually quite affordable. As seen above in our real estate metrics, the median property price is $523,873, which is much lower than in other surrounding states.

For an investor, this could be a great opportunity to purchase an affordable investment property and make a large income. Renters will not be hard to find with so many people relocating to the area, so this is definitely a good location to expand your portfolio.

What’s the Best Real Estate Investment Strategy in Arizona?

With such an extensive housing market in Arizona, there are actually a few different strategies that could produce successful investment properties. First, both traditional and Airbnb rentals will be effective in this housing market. People will be looking for long-term rental housing options if they are moving to the state for work. On the other hand, many people travel to the state year-round to vacation, and short-term Airbnb properties will also be profitable.

If rental properties aren’t really your thing, fix and flip is also a great investment strategy for Arizona houses. People looking to purchase properties will certainly be interested in your fix and flip with new renovations and upgrades.

How to Find Houses for Sale in Arizona

If you are an investor looking for a way to find new houses for sale Arizona, there are a few different strategies you can do. The first way to see new cheap houses for sale in Arizona is by looking through the local papers or news. A new listing will be posted on local sites to help promote the listing.

If you are not local, you can search through the MLS database and find new properties available in Arizona. Here, you can see foreclosures, past rental properties, and any type of listing available.

Another way to find properties is through online websites such as Mashvisor. All kinds of tools and services are available to help investors find their perfect investment property.

Related: The Definitive Guide to Buying a House in Arizona

Top 5 Cities in Arizona for Traditional Rentals

If you are an investor looking for a long-term rental property, below are the top five cities for traditional rentals in Arizona:

1. Kearny, AZ

• Number of Listings for Sale: 6
• Median Property Price: $162,133
• Average Price per Square Foot: $128
• Number of Traditional Listings: 0
• Monthly Traditional Rental Income: $1,550
• Traditional Cash on Cash Return: 7.78%
• Traditional Cap Rate: 8.16%
• Price to Rent Ratio: 9
• Days on Market: 94
• Walk Score: 26

Located in Pinal County, investors should look for houses for sale in Kearny, Arizona. The town is not only one of the safest towns to live in but also offers an attractive traditional cash on cash return of 7.78%. Kearny can be a good opportunity to generate profits. 

2. Superior, AZ

• Number of Listings for Sale: 5
• Median Property Price: $257,800
• Average Price per Square Foot: $191
• Number of Traditional Listings: 0
• Monthly Traditional Rental Income: $1,590
• Traditional Cash on Cash Return: 5.39%
• Traditional Cap Rate: 5.60%
• Price to Rent Ratio: 13
• Days on Market: 0
• Walk Score: 43

Also located in Pinal County, this town boasts excellent metrics for investors. Investors looking for traditional rentals should consider houses for sale in Superior, Arizona. The town attracts families and couples looking for a long-term residence. 

3. Safford, AZ

• Number of Listings for Sale: 17
• Median Property Price: $288,582
• Average Price per Square Foot: $158
• Number of Traditional Listings: 1
• Monthly Traditional Rental Income: $1,588
• Traditional Cash on Cash Return: 4.52%
• Traditional Cap Rate: 4.67%
• Price to Rent Ratio: 15
• Days on Market: 81
• Walk Score: 61

Investors should look for houses for sale in Stafford, Arizona, due to its impressive real estate metrics. The city is located in Graham County and offers plenty of fun activities, including local parks and lakes. As a kid-friendly town, investors can capitalize on families wanting to move to the area. 

4. Rio Verde, AZ

• Number of Listings for Sale: 14
• Median Property Price: $1,042,840
• Average Price per Square Foot: $477
• Number of Traditional Listings: 23
• Monthly Traditional Rental Income: $5,076
• Traditional Cash on Cash Return: 4.15%
• Traditional Cap Rate: 4.19%
• Price to Rent Ratio: 17
• Days on Market: 0
• Walk Score: 0

In Maricopa County, investors should look for houses for sale in Rio Verde, Arizona. The community is considered one of the best places to live in the state, meaning finding renters will be practically effortless. With a cash on cash return of 4.15%, Rio Verde is a desirable investing location.

5. Wellton. AZ

• Number of Listings for Sale: 33
• Median Property Price: $271,061
• Average Price per Square Foot: $187
• Number of Traditional Listings: 2
• Monthly Traditional Rental Income: $1,770
• Traditional Cash on Cash Return: 3.58%
• Traditional Cap Rate: 3.70%
• Price to Rent Ratio: 17
• Days on Market: 87
• Walk Score: 33

Houses for sale in Wellton, Arizona are also an excellent option for long-term investments. With hot springs and museums, there are plenty of attractions in Wellton, which is located in Yuma County. 

Top 5 Cities in Arizona for Airbnb Rentals

For short-term rental investors, here are the top five cities to put your money in:

1. Springerville, AZ

• Median Property Price: $307,875
• Average Price per Square Foot: $194
• Days on Market: 0
• Monthly Airbnb Rental Income: $2,410
• Airbnb Cash on Cash Return: 6.22%
• Airbnb Cap Rate: 6.45%
• Airbnb Daily Rate: $115
• Airbnb Occupancy Rate: 59%
• Walk Score: 44

Located in Apache County, houses for sale in Springerville, Arizona can be very appealing. The town offers all kinds of hiking opportunities that attract visitors. With a cash on cash rate of 6.22%, there is plenty of money to be made in Springerville.

2. Tolleson, AZ

• Median Property Price: $470,721
• Average Price per Square Foot: $248
• Days on Market: 22
• Monthly Airbnb Rental Income: $3,723
• Airbnb Cash on Cash Return: 5.30%
• Airbnb Cap Rate: 5.39%
• Airbnb Daily Rate: $181
• Airbnb Occupancy Rate: 64%
• Walk Score: 67

Houses for sale in Tolleson, Arizona can be a great investment opportunity to invest in Airbnb. The city is located in Maricopa County and is one of the safest cities in Arizona. With a cash on cash rate of 5.30%, you will always be able to find a vacation renter for your property.

3. Waddell, AZ

• Median Property Price: $815,796
• Average Price per Square Foot: $321
• Days on Market: 0
• Monthly Airbnb Rental Income: $5,032
• Airbnb Cash on Cash Return: 5.04%
• Airbnb Cap Rate: 5.11%
• Airbnb Daily Rate: $221
• Airbnb Occupancy Rate: 70%
• Walk Score: 4

Also located in Maricopa County,  houses for sale in Waddell, Arizona are very popular among Airbnb investors. The community attracts people who love the outdoors, as there are many hiking trails and mountains here. Investors will always find a renter for their Airbnb in Waddell.

4. Surprise, AZ 

• Median Property Price: $574,825
• Average Price per Square Foot: $1,886
• Days on Market: 155
• Monthly Airbnb Rental Income: $4,203
• Airbnb Cash on Cash Return: 4.98%
• Airbnb Cap Rate: 5.06%
• Airbnb Daily Rate: $178
• Airbnb Occupancy Rate: 68%
• Walk Score: 15

Also located in Maricopa County, Surprise offers many desired amenities for travelers. Houses for sale in Surprise, Arizona offer a great opportunity for investors with a 4.98% cash on cash return.

5. Tempe, AZ

• Median Property Price: $661,702
• Average Price per Square Foot: $349
• Days on Market: 10
• Monthly Airbnb Rental Income: $4,211
• Airbnb Cash on Cash Return: 4.61%
• Airbnb Cap Rate: 4.69%
• Airbnb Daily Rate: $187
• Airbnb Occupancy Rate: 62%
• Walk Score: 51

Lastly, houses for sale in Tempe, Arizona are an excellent listing location for investors. The city is home to several coffee shops and restaurants that visitors will love. Tempe is also located east of Phoenix, so travelers can visit and experience the latter as well.

Recap

When looking for new investment properties, all investors should consider Arizona to expand their portfolios. In this sunny state, there are plenty of opportunities for successful investment properties, whether it be long-term rentals or house flipping properties. There are many houses with land for sale in Arizona that can bring in attractive returns.

If you are considering Arizona for your next investment location, visit Mashvisor for all of the best real estate investing tools.

Mashvisor offers a number of tools that can help you locate tiny houses for sale in Arizona, as well as short-term and long-term investment property locations. Our real estate heatmap can help point you in the right direction of the best cities for your specific investment strategies.

Sign up for a 7-day free trial today and find houses for sale in Arizona using Mashvisor.