Investment Property Decision

Hey guys, my friend he has a 1-1/2 years old property in Chandler, Arizona and he is thinking of selling it. Is it now the right time to sell it? It seems that if the Fed continue to rise the interest rates, then wouldn't it be hard to sell it in the future and taking chance of depreciation on the value of the property. In addition, renting it out is really a pain due to hard to find tenants and problems with the tenants when they moved in like not making payment on time, etc. However, this place is close to many big corporations like Intel, Microchip, Honywell, and Motorola. So what do you guys think about this situation and about this location? Should he hang on to it or should he let it go? Thank a lot

[ Edited by cash4me on Date 08/15/2005 ]

Well, why is he thinking of selling? Was he renting it out previously and had problems with tenants? I don't think he would have any problems selling right now if that's what he chooses to do, Arizona is a hot state as far as real estate goes.

Personally, if his issue was problem tenants then he should just be more selective and do a more thorough check on prospective tenants before renting it out. Also, since the house is located in a good area (close to alot of companies) he might want to think about checking with them and seeing if he can put a flier up on their bulletin board or something like that in the building in the hopes of getting a good professional as a tenant.

He is so desperate of renting it out so much that he's thinking of using property management to help him find a good tenant and keep things in place. Most of the property management group they charge $500 fee to open account with them and every month they collect the 8-12% on the monthly rent and send the rest by check to him. By opening an account with them, they will look for tenant and do all the screening and paperworks. He told me one of his friend let people rent it and they couldn't pay and the only way to evict the tenant is to bring it to court. So from example of his friend he's thinking to sell it so that he can avoid all the hassles with the tenants and the risk of depreciation when interest rates hikes. Thanks for viewing and more opinions are welcome.

[ Edited by cash4me on Date 08/16/2005 ]

It's time to sell in Arizona when your sunglasses are melted to your car dashboard.

It's time to sell when you have to wear adult diapers just to solve your butt sweat problems from the intense heat.

It's time to sell when your iced tea becomes hot tea within a few minutes of sitting in an outside cafe.

It's time to sell when lakes become ponds and ponds become skateboard parks.

It's time to sell when even cactus are starting to wilt.

It's time to sell when even you decide to wear a turbin.

LagoonCondo-

You so crazy

Hey lagoon,

Might be hot but we don't have hurricanes, mosquitos that double as turkey dinner, alligators in our swimming pools, sinkholes, and I only have to shower once a day instead of 3-4 the last time I visited FLA.
Just kidding, lots of cool stuff there.

You forgot the sharks.
Population of the panhandle of FL
197,234 & 1/2 ---(damn sharks)

Actually mosquitos are controlled by spraying but the spray seems to make everybody stupid around here or at least I think there is a link but can't prove it.

Hurricanes seem to attract to Pensacola a lot, I guess more mobile homes there.

the fact that your friend's property is in good location and very new he would not have a problem selling since there are lots of buyers out there right now all over the country. He obviously does not want to be a landlord or does not know how so maybe selling is his best solution. If he is looking at long term investment then he can pay a realtor for management fees then he would no longer have the problem of renting or keeping up the property.

Keep it and rent to the local big corporations employees. Just keep looking for a great tenant.