Phoenix is a city that’s growing in popularity and quickly becoming a great place to live. With its warm climate, diverse culture, and vibrant economy, it’s no wonder why so many people are looking to move to The Grand Canyon State. But if you’re looking to invest in real estate, you may be wondering if house hacking in Phoenix is a good option.
In this post, we’ll take a look at the six demographic data points we use to analyze a market, the house hacking strategies that might work well in this market, and whether Phoenix is in a landlord or tenant-friendly state. We’ll also provide you with all the information you need to make an informed decision about house hacking in Phoenix.
Phoenix: Tenant Friendly, or Landlord Friendly?
Phoenix, Arizona is a state that tends to be landlord-friendly. Arizona has some of the most landlord-friendly laws in the country, including no limits on security deposits, no rent control, and no requirement for landlords to make repairs. Additionally, Arizona has a very fast eviction process, with landlords able to evict tenants within 10 days of a tenant not paying rent.
Phoenix also has some additional laws that are beneficial to landlords. For example, landlords are allowed to charge late fees and can also charge a fee for returned checks. Additionally, landlords are allowed to enter a tenant’s property without notice for certain reasons, such as to make repairs or show the property to prospective tenants.
Overall, Phoenix is a very landlord-friendly city, and landlords should feel comfortable investing in the area. However, it is important to remember that tenants still have rights, and landlords should always be sure to follow the law when dealing with tenants.
Phoenix Demographic Data Analysis
Using the six demographic benchmarks for analyzing a real estate market, we’ll take a look at how Phoenix compares against the basic benchmarks that we use to determine whether a market is good for investing in real estate in general and house hacking in particular.
When it comes to these six metrics, this is how Phoenix compares to our benchmarks:
|Data Point||Benchmark (since 2000)||Phoenix|
|Property Value Growth||40%||253%|
|Crime Level||< 500||386|
|Crime Change||0% or declining||2%|
|Job Growth||> 1%||2.4%|
Overall, Phoenix has serious potential for a house hack based on the 6 demographics we use to analyze the markets, hitting the benchmark on 5 out of 6.
The population growth, income growth, property value growth, and job growth all look good, and the crime level is low enough to be considered a safe investment.
The only metric that falls short is the crime change, but with the other metrics looking so strong, this shouldn’t be a major concern.
Overall, Phoenix looks like a great option for a house hack!
3 Strategies for House Hacking In Phoenix, Arizona
With a median home price of $440,000, Phoenix isn’t cheap by any means, but it’s more affordable than many other major cities in the US. Plus, the city has a booming economy and plenty of job opportunities. Here are 3 strategies for house hacking in Phoenix.
Look for Multi-Family Properties
Multi-family properties are a great way to house hack in Phoenix. It’s much more affordable to buy a multi-family property than a single-family home. Plus, you can rent out the other units to cover your mortgage payments. This is a great way to get started in house hacking.
When looking for multi-family properties, look for ones that are in good condition and have potential for appreciation. Also, make sure to do your due diligence and research the area to make sure it’s a good investment.
Take Advantage of Short-Term Rentals
Phoenix is a popular tourist destination, so taking advantage of short-term rentals can be a great way to make extra money. Airbnb and other short-term rental sites are a great way to make extra money on the side. Plus, you can use the extra money to pay off your mortgage faster.
When setting up a short-term rental, make sure to research the local laws and regulations. Also, make sure to set up a system for cleaning and maintenance to ensure your rental is always in top condition.
Look for Fixer-Uppers
Fixer-uppers can be a great way to get a good deal on a house in Phoenix. With a median home price of $440,000, it can be hard to find a good deal on a house. But if you look for fixer-uppers, you can often get a good deal on a house that needs some work. Plus, you can use the extra money you save to make improvements to the house.
Neighborhoods for House Hacking in Phoenix
Phoenix is a great place to look for house hacks, with a wide variety of neighborhoods to choose from. It’s important to do your research and find the best neighborhoods for your needs, as some areas may be more desirable than others.
When looking for the best neighborhoods in Phoenix, it’s important to consider factors such as safety, access to amenities, and the local economy. It’s also important to look at the surrounding suburbs and sleeper communities, as they may offer better house hacking options than the main city.
Finally, it’s important to look at the long-term trends in the area, as some neighborhoods may have been improving over time while others may have been declining. By doing your research and looking at the data, you can find the best neighborhoods in Phoenix for house hacking.
Best Phoenix Neighborhoods to House Hack
- Central City
- Downtown Phoenix
- Willo Historic District
- Camelback East
Worst Phoenix Neighborhoods to House Hack
- South Mountain
- Camelback East
House Hacking in Phoenix: Should You Do It?
Overall, Phoenix is an excellent option for house hacking. With its landlord-friendly laws, strong population and income growth, and low crime rate, it’s a great place to invest in real estate. Additionally, there are a wide variety of neighborhoods to choose from, so it’s important to do your research and find the best one for your needs. With the right research and analysis, house hacking in Phoenix can be a great way to build wealth and create a passive income stream.