Tucson Arizona. A good place to start?

Question

As I begin my journey as a real estate salesman and investor, I can't help but wonder: is Tucson really the best place to start? Our economy is among the worst in the country but it has been slowly growing over the past few years. The average cost of single family dwellings is around $180,000 with an average residential income of about $48,000. I'd love to hear from some people in the area and learn your horror stories as well as your successes. Also, I'd love to build a relationship with anybody looking for a go to Realtor to get things done.

Brian Ploszay · Answer

A partner of mine lives in Tucson - and I went on a real estate tour there.  On the whole, I like it.  The wages are not that high, but it is propped up by retirees settling there and the University.   I predict that region will continue to grow.  Investing in your backyard seems like a good way to start out.

Kristie Eddy · Answer

Hi @Joshua D Black - We own 5 units in Tucson, rented all to college students, and have been very fortunate with this area for investing so far.  If fact, it was a BP member who literally got us our 4-plex. I agree with the members above - every market has some level of risk vs. reward.  This town may require a deeper level of homework but wow, it's been worth it for us. Plus, as I am learning about rental properties, I'd certainly rather take some hard knocks in an area that won't bankrupt up vs. California where I live for example.

Benjamin Riehle · Answer

Hey @Joshua D Black,

Tucson has been very good to me from an investment standpoint as well as building a R/E business to service clients. I recently wrote an article on BP about the key indicators in Tucson that point to substantial upside potential in our market and economy. If you want to check it out here is the link: https://www.biggerpockets.com/forums/601/topics/44...

Additionally, you should read Gary Keller's book The Millionaire Real Estate Agent. This book really help lay the foundation for my business model and showed how to monetize a real estate sales team and leverage that into a full service investment fund.

Feel free to shoot me a PM if you would like to connect and discuss more!

Good luck!

David Faulkner · Answer

If you want to dip your toes in without swimming in debt first, consider getting your RE license and working part time or full time as a realtor. Costs to do so are fairly minimal, so all you'll really risk is your time, but then again that's your most valuable asset :)

David Faulkner · Answer

Tucson is a fantastic place to start, especially for those living there. There are great investments and horrible investments to be had in each and every market in the US, and Tucson is no different. A lot of redevelopment going on downtown, so there could be plenty of path of progress plays there. Lots of flip opportunities in the foothills. Student rentals anyone? Opportunities abound, you just have to train your brain to spot them and your arms and legs to execute them ... I'd advise finding some experienced local investors at REI meetups, find out what is working for them, and find a way to add value to their operations in exchange for some knowledge and experience. You are also wise to keep a close eye on the downsides, as every market has those too ... for a pro investor, though, spotting them is not a question of letting them scare you, but rather crafting and executing a strategy that will max your profits while hedging your downside risks ... good luck, and Bear Down!

Joshua D Black · Answer

that we do. There are also no fewer than 10 trailer parks I know of for sale. I've heard they can be great investment properties if you make them into convict communities.

Tucson Arizona. A good place to start?

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