Getting Started with Buying Investment Property in Arizona

If you are thinking about buying an investment property in Arizona, it’s no surprise. The Arizona housing market is one of the hottest markets today, and it’s not likely to change anytime soon.

Arizona is one of the top choices for those who want to live in a place they’ve always dreamed of without worrying about giving up their jobs. The large influx of people moving to Arizona hasn’t wavered, especially now that many work from home. Remote work has created a tremendous demand for Arizona properties and has made investing in rental properties a reasonable proposition.

Here are tips for starting your real estate investing journey in Arizona.

Find the best location

The first step in your Arizona real estate investing adventure is to get in touch with a mortgage broker in Arizona and narrow down which neighborhood has high-return investment properties. 

The top locations to consider are Phoenix, Paradise Valley, and Scottsdale. New growth areas like Avondale, Gilbert, and Surprise are also worth looking into.

These locations are the most popular for Arizona relocation, making them an ideal area for buying an investment property. 

Ways to Secure Financing for your Arizona rental property

After finding the best location for your rental property, the next step is looking for ways to fund your purchase. One of your best options is applying for a commercial mortgage loan in Arizona.

Let’s look at ways to fund your rental property in Arizona.

Conventional loans

Suppose you’ve bought a home before, you’d be pretty familiar with conventional loans since they are one of the most sought-after loans these days. These loans conform to the guidelines Freddie Mac or Fannie Mae set and are not backed by the federal government.

With conventional financing, a higher downpayment is usually required for your rental property, usually 30% or higher. Your credit scores and history will also determine your interest rate and whether you’ll get approved. You’ll get a higher chance at loan approval by having at least six months of cash saved to show that you can pay for your mortgage. 

Commercial Lenders

Commercial lenders are another option for financing, especially if you are buying a property with five units or more. These loans have shorter terms, from 20 to 25 years, compared to the traditional 30-year period, and they also have higher interest rates.

This type of financing is ideal for investors who don’t have the usual financial documents since lenders look at the potential income of the property and decide whether to approve your loan or not.

Hard Money Lenders

If you are into the fix-and-flip strategy, hard money loans may be better since they offer shorter loan terms and fast approval.

If you are ready to finance your investment property, look for the best deals at Castle Rock Mortgage Loans.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.