High competition

3 Replies

I'm in Tucson. We experienced huge appreciation the last few years. This has attracted many people to get into REI. Prices have dipped somewhat since last year. We have 2 duplexes. We've benefited from the last few years but we bought pretty old, high maintenance properties (and tenants). We have pretty good cash flow but a lot of repairs and, rate of appreciation is much less this year, and I am a burnt out landlady who had neurosurgery last year. I'd like to get out from under these properties. We are in our 50's with nothing but our properties for retirement. I want to use what little we've accumulated to really make our equity work. I am willing to do REI almost full time. Investment properties here are priced high and would not give us cash flow. I feel like the experienced REI pros are many steps ahead of me. I'm trying to get focused in an area that may not bring as dramatic returns as the money flush pros look for. Like can you count on the first house in a new development priced low for flipping? We will need to 1031 one of our properties for sure. What about developing land and putting a manafactured home on it and then selling. I just hate being a landlady. Lot's of questions. Thanks for any help.

neurosurgery - wow, that's heavy.

not sure what you want. you seem to be jumping all over the place. what is it you want to do? what do you mean you "have to" 1031 one of your properties? you have that much cap gains? i thought you said the appreciation hasn't really taken off - or have you owned it a long time - guess since you're on burn out - you've had'em a long time.

sounds like you want to get into a little more of the "quick cash" scene.

timing might be a little off.

it's my "feeling" that unless you move with the market, like physically, or have the capabilities to invest in areas you don't live in or near - i think we're going to see (and are seeing) a general slow down of the fast movement of rehabs we saw over the past 3 to 5 years.

of course, buying land is always a good thing, if you know where to buy, when to buy it and have the cash to either hold it or develop it.

we "plan" to buy land every year in different areas of the country - cash and small deals. buildable, solid lots in trending areas. at least that's a goal.

Yes I'm deffinitely unfocused. That's my problem.
Both properties appreciated because we bought them 3 years ago right before the boom. One property was bought as a 1031 and yes the cap gains would be big. So I'm trying to figure out what we could exchange with that property that wouldn't be such a drain on me as a landlady. I guess I'm wondering what other investors are doing beside owning rental property when they have to do a 1031.
What do you think about developing a piece of land with a used manafactured home?

How do you know when and where to buy land? What is the research process?

Since I'm not quite at full speed yet, do you think I could compete with more experienced investors looking for foreclosures? I would be happy to make less money than other investors so I'm wondering if there is a niche of investing that gets overlooked.
Thanks, I really appreciate your help.

Hi - I live in AZ too and have seen the prices skyrocket and I love it since we are custom home builders. And during this downturn, the prices haven't gone down very much. The prices are staying the same or going up but taking longer to sell properties. So for us, as investors, that's not good! We want a fast turn around.

Developing land is not an easy job - I think I'd rather be a landlord! LOL We are trying to develope several parcels of land and there are more headaches than you know.

My advice if you want to get into full time REI in AZ is to start small with something pretty certain. Buying land in the wrong area will kill you - so be careful. And there are tons of houses sitting all over AZ owned by "investors" who now can't "flip" them. These are the majority of foreclosures in new subdivisions. Please do your homework. Good luck.