Advice on investing in Syracuse NY and Tucson AZ

Advice on investing in Syracuse NY and Tucson AZ

CA · Member since 2018 · 32 posts · 2 votes

Greeting Fellow Investors!

We are evaluating a multiplex deal in Syracuse (near SU) and one in Tucson AZ (near UA). The metrics I am looking at are:

1. Returns

2. Population Growth

3. Job Growth

Syracuse:

#1 works well for us, #2 seems to be bad per wikipedia.org (https://en.wikipedia.org/wiki/Syracuse,_New_York#D...) shows a continuous decline in population census over census. Is that a bad sign and good enough reason to stay away from the deal?

#3, I am not able to figure out easily. Any pointer on how could we figure this out?

Any fellow investors from Syracuse who could share their experience and provides some suggestions on investing in Syracuse?

Tucson:

#1 works well for us, #2 seems to be good as well.

#3, I am not able to figure out easily just like for our Syracuse deal. Any pointer on how could we figure this out?

Any fellow investors from Tucson who could share their experience and provides some suggestions on investing in Tucson (specially around UA area)? 

Thanks much in advance!

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Patrick AllenBusiness Member
Realtor · Tucson, AZ · Member since 2014 · 241 posts · 139 votes
8y

@Deepak Kumar

Check out the Bureau of Labor Statistics' website. Will give you a quick snapshot of the overall picture.

So far as job inflow is concerned, in addition to Caterpillar, Geico and Raytheon @Ivan Dodic mentioned it was also recently announced that an Amazon Distribution Center is coming to Tucson. Finally reaping the rewards of millions of dollars spent revitalizing the downtown area the previous decade.

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  • Investor · Winters, CA · Member since 2016 · 27 posts · 10 votes
    8y

    @Deepak Kumar, I live in Northern California and closed on an 8-plex a week and a half ago and am in contract on a 44 unit in Tucson as we speak, so I can’t speak from experience as of yet but I agree the Tucson market looks good in my opinion.

    In regards to job growth, Caterpillar is moving it’s headquarters to Tucson (google caterpillar and Tucson) and Geico is building a corporate office there. This is in addition to the solid company growth at Raytheon as well as the military base. Also, University of Arizona is looking to expand it’s studen population by over 50% over the next few years. 

    Hopefully that is helpful!

  • CA · Member since 2018 · 32 posts · 2 votes
    8y

    @Ivan Dodic 

    Thanks for sharing Ivan. That is very helpful. IMO, it looks good too. I guess will have to see how it goes. Wish you good luck on your investments.

  • Tucson, AZ · Member since 2017 · 96 posts · 58 votes
    8y

    Hey @Deepak Kumar,

    @Benjamin Riehle has high quality posts about the Tucson market that get me excited. To answer your question on the Tucson job growth, here's Ben's post on that: 

    https://www.biggerpockets.com/forums/311/topics/58...

    Tucson is a great market and is growing rapidly. In my opinion, the 'deals' are off-market, and require some creativity in order to justify, so I'd start looking there. Happy investing! 

  • Developer · Tucson, AZ · Member since 2015 · 190 posts · 309 votes
    8y

    @Naftali Tolibas, thank you for the shoutout. 

    @Deepak Kumar happy to help. The college market around the UofA is rapidly changing.

    Best,

  • Patrick AllenBusiness Member
    Realtor · Tucson, AZ · Member since 2014 · 241 posts · 139 votes
    8y

    @Deepak Kumar

    Check out the Bureau of Labor Statistics' website. Will give you a quick snapshot of the overall picture.

    So far as job inflow is concerned, in addition to Caterpillar, Geico and Raytheon @Ivan Dodic mentioned it was also recently announced that an Amazon Distribution Center is coming to Tucson. Finally reaping the rewards of millions of dollars spent revitalizing the downtown area the previous decade.

  • CA · Member since 2018 · 32 posts · 2 votes
    8y

    Thanks @Naftali Tolibas, @Benjamin Riehle, @Patrick Allen for your responses. Much appreciated.

    Will definitely ping you Benjamin if have more questions on Tucson.

    On Syracuse:

    Given that no one said anything about Syracuse, seems like it definitely doesn't look to be a good market. How do you compare Syracuse vs Chicago? I guess both places are tenants friendly but Chicago seems to have more potential? How is South Shore area of Chicago specifically? South Shore seems to be some high cap rate area but would appreciate some first hand experience on that.

    Btw, in general should I even care about neighborhood as long as I can find a property management company to look after it and numbers are good?

    @Patrick Allen

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