There is no denying that metro Phoenix residential real estate offers great value and investors are welcome buyers.  Each month thousands of homeowners are displaced through foreclosures and short sales. Quality rentals are at a premium as demand outweighs the supply.  The Phoenix residential real estate investor role in helping to stabilize our housing market is two fold: First, buying -rehabbing and then re-selling foreclosed properties benefits communities and offers great value for move-in ready homes for first time buyers or those buyers not wanting to get involved in a remodel project. Second, Phoenix residential real estate values also assist those Phoenix investor buyers who are looking for a more long term return on their investment, through investor purchase - rehabbing and holding the properties.  Those who choose to hold and rent will soon discover a pool of qualified prospective tenants, who have damaged credit but understand the value of home ownership having been a homeowner themselves. Most of these prospective tenants understand the short and long term credit impact of their recent short sale or foreclosure and are anxious to sign rental agreements of two to three years, helping them create a new sense of stability and giving the investor a long-term tenant.

The current values allow a positive cash flow for the investor while also offering a quality rental at a more affordable rent to these "new tenants" when compared to their prior mortgage payment. For the investor of Phoenix residential real estate who has some patience, there are also great opportunities with short sales, which typically require a lot less work to get them ready for future tenants.

It is also a possibility that the short sale property might have tenants already in place, paying current market rates, offering immediate return (ROI), without the vacancy factor when marketing for that first tenant. Making sure that the seller will credit the buyer with whatever deposits are due the current tenants will avoid unpleasant surprises at the expiration of the current lease. Reviewing current leases as a condition of purchase contract acceptance is also critical for the investor. A word of caution to both investors and homeowners going through a short sale;  When it comes to owner-occupied properties, and the prospect of the seller becoming tenant after closing, seller creditors are very specific about affidavits required by all parties in a short sale attesting that the transaction is an arms length transaction, with no familial, business or close personal ties between the buyer and seller. Upon the completion of a short sale, the sellers' creditor expectation, as an implied or stated condition for short sale acceptance, is that the homeowner will vacate the home.

  Attempts to keep the seller in place as a future tenant should never be entered into without disclosure to the seller creditor during the short sale process.  Getting written acknowledgement of a Landlord -Tenant relationship after the sale is completed and creditor approval of such an arrangement is essential to insure no future challenges by the creditor.