Looking for first property in the Tucson, AZ area.

16 Replies

Looking to invest in my first property in the Tucson, AZ area. Anyone with additional insight to the Tucson, AZ market? Is this a good place to start with less than $100k to invest?

@William Horsey

The median sales price in December of 2017 was $205k, so you're looking at the bottom 50% of the market. But, if you're going for $100k all-in, you're really looking to buy at the $75k range.

I would probably suggest using the $100k as a down payment and rehab money and get a hard money loan or team up with a private lender so you can expand your budget a little. Even just another $50k would make a major difference.

Tucson was projected as a Top 10 market like Phoenix was last year, so it's super hot. It'll continue to grow until the rate of new construction picks up, but in most markets it's well behind the demand.

The best news for you is that homes that look great sell fast and for more money. So a flip will be profitable if done correctly.

Wes Blackwell, Real Estate Agent in AZ (#SA674470000) and CA (#01991457)
(480) 482-9564

Hey @William Horsey , how are you?

Are you looking for a buy-fix&sell  or long terms rentals? are you looking for turnkey property or you plan to do all the work yourself?

What your expectations and goals as investor?

Cheers,

Tomer

Great, thanks for asking. 

Buy and hold looking to get $200 minimum passive income. Looking for wholesale properties that need some rehab, considering to manage the first property. Willing to look at turnkey properties as well.

Hey @William Horsey

I'm currently looking in the Tucson area too. Like what Wes has said, its a very hot market. It's amazing because I am seeing prices rise right before my eyes. There are deals, but as you know, most are off-market.

Be careful and really take the time to pick out a 'good' location. There are a houses under 100k, but they are in the more sketchy parts of Tucson. Anything below 22nd street is a hard sell and should be avoided IMO. Central near the U of A and below Grant Rd are ok, depending on the area.

Are you planning on house hacking? 

@Naftali Tolibas thanks for the info. Not at this point and time. I would consider a flip if the numbers a right. I am aware of some homes that have been hacked in the UofA for rentals.

@William Horsey  have you considered investing in a public non-traded REIT?  If you are looking for $200 passive income, that means your 90k would only need to generate 2.6%. 

Originally posted by @Naftali Tolibas :

Hey @William Horsey

I'm currently looking in the Tucson area too. Like what Wes has said, its a very hot market. It's amazing because I am seeing prices rise right before my eyes. There are deals, but as you know, most are off-market.

Be careful and really take the time to pick out a 'good' location. There are a houses under 100k, but they are in the more sketchy parts of Tucson. Anything below 22nd street is a hard sell and should be avoided IMO. Central near the U of A and below Grant Rd are ok, depending on the area.

Are you planning on house hacking? 

This is why i like 22nd and under, less competition. 

If the numbers are right, they are right in any location.

Tomer

I agree, they are cheaper, but it may be a bit more difficult with the tenant base. I’m not native to Tucson, so I’m not sure what areas under 22nd would have a great tenant base. However, the crime rates are definitely higher and in a buy and hold strategy it may be more difficult to find quality tenants. 

To me, it’s a safer start to go up north, location vs cash flow is a tough battle but I think In the long term, location causes less headaches and more security. 

I haven’t watched Tucson closely lately, but last I looked Barrio Hollywood had similar prices to areas south of 22nd, and similar problems.  But if I had wanted to bet on the next central neighborhood to gentrify, I’d at least take a look there.

What the the tenants around Davis-Monthan? Does any of the AF members rent around it?

Originally posted by @Tomer Kalimi :
Originally posted by @Naftali Tolibas:

Hey @William Horsey

I'm currently looking in the Tucson area too. Like what Wes has said, its a very hot market. It's amazing because I am seeing prices rise right before my eyes. There are deals, but as you know, most are off-market.

Be careful and really take the time to pick out a 'good' location. There are a houses under 100k, but they are in the more sketchy parts of Tucson. Anything below 22nd street is a hard sell and should be avoided IMO. Central near the U of A and below Grant Rd are ok, depending on the area.

Are you planning on house hacking? 

This is why i like 22nd and under, less competition. 

If the numbers are right, they are right in any location.

Tomer

 Sounds positive. This is what I was thinking.

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