I have been doing my homework to figure out how and where I want to start with REI and have noticed that the Tucson forum is pretty quiet. There's Davis Monthan AFB, University of Arizona and a new amazon facility going in but there doesn't seem to be much to find on PB. What's wrong with Tucson?
Tucson was slow into the recovery but right now is doing really well bordering into the slightly overheated. It is harder to find those deals like it is everywhere right now. We also have 2 hotels and 2 apartment buildings coming in as well as quite a bit of elder care stuff. We do have some general problems with property crime.
From what I’ve seen unless you are doing off market deals it’s tough right now as it is everywhere, though the market overall has been showing signs of a slowdown.
There is an insane amount of new SFR construction going on around the edges of the city (Vail in the SE, Marana in the NW, and huge swaths of new construction in the middle just south of I-10), I suspect driven by developers hoping to capitalize on the growth here. Whereas the dense interior of the city (I call it "the grid" due to the neatly arranged streets on a perfect 1 mile grid) is packed with old houses desperately in need of updating. I believe that much of the new construction will be overpriced for a lot of the Tucson demographic, so updated nice older houses will appeal to many.
I see a ton of flips in the listings in all parts of town. Bandit signs on almost every corner in my area (SE) also. There is definitely plenty of investor activity.
I've been analyzing SFRs for a little while and it seems easier to find potential flips, than buy-&-hold rentals. I don't have a good off-market connection yet nor have I spent much time looking at multi, so I can't really speak to those.
Our agent recommended making lots of lowball offers, and as always cash is your friend.
Luke, you are right about "the grid" hah. Over the last few years with the value going up though I've seen quite a bit of tear downs for new builds, especially around the U. We could really use a revival in some of those areas!
There are also a lot of potential upcoming opportunities as Tucson may experience a sizable influx of people in the next couple of years. Caterpillar is moving a new facility here, Raytheon is looking to hire on over 2000 new engineers, and more office workers, there is talk about Texas Instruments moving back, and potentially even IBM. With that many new jobs coming, there are going to be a lot of new buyers who may find updated older houses more appealing (and affordable) than a new expensive house.
I live in the East side of Tucson and since moving here in June of 18, notice that investors buy these houses at a price that doesn’t allow enough $ for a proper rehab. An average 1960’s property requires at least $65k in rehab to undo functional obsolescence. Most property is bought at auction. In Tex these properties sell for approximately $60K while here selling for 100-150k.
with all the companies coming in to Tucson, as investors, we need to consider people moving from all over the US and they will not want a 1950's home that hasn't been updated to 2019 standards. Why offer high prices on a house that doesn't deserve it and the ARV doesn't support it? Even younger buyers want energy efficiency, open floor plans and a true master suite.
Hi everyone i love the conversation so far. I'm wondering if any if you currently own buy and holds here in tucson. I'm currently analyzing an off market duplex. If any of you could help that would ve awesome😀