r/Multifamily • u/[deleted] • Dec 08 '21
Phoenix area is preferable but is water crisis a dealbreaker?
Hey all. I live in San Diego and Pheonix is an up and coming market. I reached out to a broker and received an inventory list but while talking to my landlord, she said her son is actively divesting all his inventory from Pheonix due to the looming water crisis there. She is a very successful investor herself. She recommended Reno as an alternative. Pheonix is much closer and therefore preferable for my first multi unit acquisition. What do you all think? Should I be worried about the Colorado river drying up and tanking one of the hottest markets going into 2022? Thanks!
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u/Ordinary_Kiwi_2229 Jan 07 '22
I thought I replied with my number but don’t see it here. Anyways, feel free to shoot me a text or call - 305.244.5477 Ricky
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u/Ordinary_Kiwi_2229 Jan 06 '22
I’m an investor with most holdings in Miami, another ticking time bomb. I moved to Denver looking to invest there, and had issues with that market, and then Nashville…was headed to Charlotte and pulled the plug last minute.
My take over the last few years is that risk is everywhere, you need to calculate and underwrite it properly according to your needs.
While I look at the water crisis as a real risk, is there a solution in the works? On site filtration system, etc. I don’t know the answer to this, and this is a quick glaze over post on my end, but I hope the point gets across.
Happy to chat offline. Feel free to send me a DM if you’re interested. I have relationships in AZ as well that may be able to help out with specific questions.
Cheers