High Cost of new homes equals profit for flippers

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As most of you know Tucson is experiencing substantial growth. CAT is building new regional HQ that will provide 600 engineering jobs to Tucson with a projected $600 Mil. positive economic impact on Southern Arizona, Amazon will be building a 20 acre fulfillment center that will bring 2,000 jobs to Tucson, Geico’s regional office is staying in Tucson and they will be adding 700 new jobs just to name a few pieces. The new jobs combined with the fact that the median cost of a new build home in Tucson is currently $306,479. That is almost 100k higher than the June 2018 median price of $212,000. Because of that, we are seeing a clearly underserved middle class and blue-collar community. Individuals looking to flip in Tucson should be zeroing in on that market to provide value. I will post an example of a couple recent deals below. I would love to connect with anyone currently doing flips or thinking about doing them to discuss how we can make money and serve the community at the same time. 

Deal 1

Purchase Price: $160,000

Remodel Cost: $20,000

Total Investment: $180,000

Sales Price: 225,500

Closing Costs: $15,640

Net Income/ROI: $29,360/16.3%

Deal 2

Purchase Price: $85,000

Remodel Cost: $15,500

Total Investment: $100,500

Sales Price: $140,000

Closing Costs: $10,168

Net Income/ROI: $29,332/26.54%

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Hello Tylor,

My wife and I are interested in REI and would like to flip our first place here in Tucson. We currently live in Vail and would like to begin looking for deals to flip. We are looking for a RE Agent with specific knowledge on flipping and contacts with reliable contractors. Thank you for offering your advice and examples of your deals. We would love to be a help to our new community and to make some money in the process.

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