http://realtytimes.com/rtpages/20091119_mistakes.htm
Great article for those looking to invest in the Great Phoenix real estate market. What many out of state investors do not realize is that the individual cities all charge rental sales tax. This must be calculated into the rent or on top of the rent to the potential tenant. Some cities are more diligent than others about collecting this sales tax. I can talk from experience that the City of Buckeye is on their game. You must have a business license to have even one home as a rental property. When the tenants turn on the utilities in their name a red flag is sent to the city auditing department and "Voila", you suddenly receive a nice little rental tax bill in the mail :)
Finding a Realtor who specializes in the area you are looking to invest in is very important.
They only thing I disagreed with in this article was the suggestion that "certain" areas are trouble. I have many clients who invest in what might be considered a "certain" area and they are finding great success especially with section 8 paying 1.5x times the normal rent guaranteed every month. The people qualifying for section 8, in my experience, have maintained the homes and left the homes in acceptable condition. If they do not, they might lose the benefit if a complaint is filed. Now this type of investment is not for everyone granted, but I do not think it should be ruled out completely as this article has done.
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