New REI and ready to go - Tucson AZ

New REI and ready to go - Tucson AZ

Tucson, AZ · Member since 2021 · 15 posts · 6 votes

Hi! I'm new to Bigger Pockets and am learning more about REI. I was an accidental landlord about 8 yrs ago in the middle of the housing crash for two years, which ended up working out very well to my advantage until I was able to sell at a later date (very high HOA fees and other issues with keeping as a long term rental). Now I'm interested in REI on purpose. I have interests in student housing / multifamily and STR's - although I'm keeping an open mind and may start looking at LTR's.

I am also in the process of getting my real estate license - just passed the state exam, so one more class and final application to go!  Not looking to change jobs, but hoping to use my license as an advantage in obtaining properties in AZ.  

Planning to get serious about buying this fall - hopefully the seller's market will start to slow. (It's crazy everywhere, but AZ especially is out of control.) So in the meantime I've been analyzing various options - and wow, not much cash flowing happening here.  I have found occasional cash flowing properties which looked great from my point of view, but were being shunned by the market - still trying to figure that phenomenon out.  In a market where everything is pending within 24-48 hrs - I'm not sure why some properties look good, but sit on the market for a week or two before being scooped up.  Also reading about syndications.  

So I'm working on building my network of peeps here.  Excited to get started.  Also considering buying out of state vacation rentals that I would be interested in using at some point in the future.

Anyways nice to meet you!

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Tucson, AZ · Member since 2017 · 96 posts · 58 votes
5y

Hey Tracy, For starters, the market is appreciating, here are some numbers from Berkadia: https://berkadia.com/wp-conten...

See this reply in the discussion

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  • Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    5y

    Hi Tracy,  it is crazy in Real estate in Arizona.  Cash flow is not the answer but equity in 6-12 month is.

    Most properties are going up 25-30 % a year in good neighborhoods.

    We are number one for all homes almost 18%.

    Buy what you can and sit on it for 6-12 months!!

    Appreciation is king here

  • Tucson, AZ · Member since 2021 · 15 posts · 6 votes
    5y

    Hi David - thanks! I'm trying to figure that all out. I feel like I know how to run the numbers, but I'm not feeling as confident in figuring out what makes the most sense for me given the market right now. I did see on the national news that Phx home prices were up 18% - not sure for Tucson, but I bet we aren't too far behind. I'm now researching less expensive properties (<$200k) for LTR's. While the STR idea for snowbirds is appealing, I'm starting to think the amount of money to automate (or hire a property manager) pretty much makes STR's like airbnb makes the margins quite narrow. I'm just trying to soak up all the information on this site though. So if equity is king - does that mean you are focusing on more expensive properties then?

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y
    Originally posted by @Tracy Davis:

    Hi! I'm new to Bigger Pockets and am learning more about REI. I was an accidental landlord about 8 yrs ago in the middle of the housing crash for two years, which ended up working out very well to my advantage until I was able to sell at a later date (very high HOA fees and other issues with keeping as a long term rental). Now I'm interested in REI on purpose. I have interests in student housing / multifamily and STR's - although I'm keeping an open mind and may start looking at LTR's.

    I am also in the process of getting my real estate license - just passed the state exam, so one more class and final application to go!  Not looking to change jobs, but hoping to use my license as an advantage in obtaining properties in AZ.  

    Planning to get serious about buying this fall - hopefully the seller's market will start to slow. (It's crazy everywhere, but AZ especially is out of control.) So in the meantime I've been analyzing various options - and wow, not much cash flowing happening here.  I have found occasional cash flowing properties which looked great from my point of view, but were being shunned by the market - still trying to figure that phenomenon out.  In a market where everything is pending within 24-48 hrs - I'm not sure why some properties look good, but sit on the market for a week or two before being scooped up.  Also reading about syndications.  

    So I'm working on building my network of peeps here.  Excited to get started.  Also considering buying out of state vacation rentals that I would be interested in using at some point in the future.

    Anyways nice to meet you!

    It's good to have you here Tracy!

  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    Hi Tracy, welcome to the community! This is a great place to learn more about real estate! 

  • Tucson, AZ · Member since 2021 · 15 posts · 6 votes
    5y

    Thanks everyone!

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    5y

    Welcome to BiggerPockets Tracy!

  • Lender · Phoenix, AZ · Member since 2018 · 440 posts · 256 votes
    5y

    @Tracy Davis Welcome Tracy! 
    To your point, this market in Arizona is crazy hot. I've taken this opportunity to get a specialized line of credit set-up at these inflated values, and will mostly likely wait until the market turns to get into full-on purchase mode. 
    Definitely some exciting opportunities with the explosion of growth that Arizona has seen! 

  • Tucson, AZ · Member since 2017 · 96 posts · 58 votes
    5y

    Hey Tracy, For starters, the market is appreciating, here are some numbers from Berkadia: https://berkadia.com/wp-conten...

  • Tucson, AZ · Member since 2021 · 15 posts · 6 votes
    5y
    Originally posted by @Naftali Tolibas:

    Hey Tracy, For starters, the market is appreciating, here are some numbers from Berkadia:

    Super interesting - thanks for posting!

  • Tucson, AZ · Member since 2021 · 15 posts · 6 votes
    5y
    Originally posted by @Justin Phillips:

    @Tracy Davis Welcome Tracy! 
    To your point, this market in Arizona is crazy hot. I've taken this opportunity to get a specialized line of credit set-up at these inflated values, and will mostly likely wait until the market turns to get into full-on purchase mode. 
    Definitely some exciting opportunities with the explosion of growth that Arizona has seen! 

    That's pretty much where I'm finding myself too.  I've seen a couple of great deals go out of control in bidding wars. So I'm just trying to continue figuring out what I'm most interested in while the market is going bonkers.  Hopefully this summer the inventory will increase a bit which ought to help with the crazy bidding wars.  My plan is gearing up to start purchasing this fall.  I'm finishing up getting my real estate license too, so hopefully that will come in handy, if even just for flagging and researching properties, but hopefully I will be able to use as leverage as well.

  • Tucson, AZ · Member since 2021 · 15 posts · 6 votes
    5y
    Originally posted by @Andrew Syrios:

    Welcome to BiggerPockets Tracy!

    Thanks for the welcome!  Definitely learning a lot here!

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