Southwest Opportunity Trust - April 2015 Update

The Southwest Opportunity Trust continues to execute its business strategy of:

  1. Buying, Renovating and Selling; and

  2. Buying and Renting.

The rental market, which is the strategy consisting of approximately two-thirds of the homes within the fund, continues to be very strong. We came across a great rental market article that supports our message from the March 17th Daily Observations published by the Greater Phoenix area real estate market expert, The Cromford Report.

March 17 – Daily Observations from The Cromford Report We remember the middle of 2013 when several real estate pundits were lamenting the acquisition of single family homes by investors and confidently predicting they would not find enough tenants and have to dump the homes back onto the market in large numbers.

As often is the case, the pundits were completely wrong. Single family rentals are now is such high demand from prospective tenants that it is becoming extremely hard to find one to rent. Very few investors have sold their investments and the supply on ARMLS has hit an all-time low.

We now have just 493 single family active rental listings on ARMLS priced under $1,200 a month. Two years ago we had 2,326. This is a drop of 79%.

Since we saw 1,053 leases signed in the last month in this price range, this is just 13 days of supply.

We have never seen such a shortage of affordable single family rental homes in the Greater Phoenix area.

Between $1,200 and $2,000 per month we have 25 days of supply and over $2,000 we have a relatively generous 85 days of supply.

The following home is an example of a recent buy, renovate and sell success story.

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Please note:

  • We will continue to email quarterly updates and post news and market updates on the Capstone Real Estate website and Facebook page.

  • The next semi-annual interest distribution will be paid in late July 2015.


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