We have invested in various rental properties and condo developments over the past few years with the same developer/promoter. Most of them are done. All made good money but one. The promoter has made an offering for investors in a property just outside the Phoenix city limits. I'll tell you a bit about the property, but not enough.  It is rental property. Built in 2000, looks in good shape. The neighborhood is decidedly middle to lower middle class. Three hundred plus rental units. Replacement cost 45 million, purchase price 30 million. If property continues to perform as it has over the last couple of years, there would be a 20% return in the first five years. On the other hand, the mortgage is interest only for those five years and that is part of the reason the return is so high.
It would be a mid five figure investment.
So Arizonites, Arizonians, those from Arizona, how are things going down there? What is the water situation? I understand that the recession has hit you hard, how diversified is the economy? What is employment like? I know it is impossible to time the bottom, but the price really looks good.
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