R.O.I. Real State – Residential Newsletter – March 2026

The Greater Phoenix residential market is experiencing a recent uptick in investor interest and deals. Although that is the broad picture, there are noticeable differences in approach. On one end are wholesalers who make lowball offers without even visiting a given property. On the other are the true investors: willing to do their due diligence, including spending time at the property, and waiving inspections.

Until the past few months, there was enough uncertainty, particularly in the entry-level/move-up space, that investors had become scarce. One interesting trend is that many investors are taking a buy-improve-hold-and-rent approach rather than a fix-and-flip. In such cases, that’s a wager on potential buyers waiting on interest rates and the overall economy. Whereas fix-and-flip investors need true wholesale pricing to make the numbers work before selling to an owner-occupant, many investors have graduated into a longer-term view of generating stable rental income. In both cases, there is variance in how much they are willing to take on in rehab. On the low end, cosmetic fixes might include changing out flooring, countertops, and paint—whether or not the structure is up to date. More serious renovations involve a lot of work and heavy lifting, whether reconfiguring or adding rooms in addition to the cosmetic polish. A recent R.O.I. listing offers a snapshot into the current environment. McCormick Ranch in Scottsdale has traditionally been an older community, but currently it’s a hotspot for young families. The listing was a probate estate property in rough condition, which would typically attract an investor. Most owner-occupant buyers are not willing to take on such drastic situations, and even if they can get the financing, they are concerned about the contractor hitting their price and timeline. “The McCormick Ranch area is highly desirable, but there are few distressed properties,” says Joey Hasselbring, R.O.I. real estate specialist. “Out of a half-dozen interested buyers, the sight-unseen wholesale offers came in well below list price, The true investors were right at list and even a little above, and they waived the inspection. The highest offer we received, though, was the lone owner-occupant buyer—and they waived the inspection too.” Finally, it’s important to note that there are two areas where investing action is quiet. First, we are seeing few investors willing to take on big luxury properties on a speculative basis. Second, despite the headlines, we are not seeing the same volume of institutional investors in the marketplace as a few years ago. Most of that activity had played out by 2022, and only a very small slice of inventory is owned by institutions. For now, the market is the realm of private investors who may have a continually moving portfolio, but they are managing a few properties at a time—not thousands.