Hi Everyone! New to BP and looking to expand my real estate portfolio and to learning from all of you! I’m in a really good situation for growing and adding value to my real estate portfolio as I have a Kitchen and bath company in Tucson by the name of “Granite Planet.” We specialize in remodeling and stone fabrication and installation. We’re a one stop family owned shop and have been serving Tucson and the surrounding area since 1979. Were a very reputable company that does what we say we’re going to do and know how to provide quality!
My portfolio is just getting started as I have a home in Chandler that I purchase 3 yrs ago where I house hack with my brother and another one of my friends. Basically, they cover the mortgage and I pay for everything else.
It’s been working out so well that I was able to build a new home in Oro Valley that I closed on last Jan 2018. I commute back in forth from Chandler to Tucson because my son plays Ice hockey and competes nationally. There are no public Ice rinks in Tucson so I have been doing this for the past 10yrs now. Anyway, I built this home to stay in when I didn’t have my son as his mother and I coparent. It’s worked out well as I stay there when I need to but I also have it rented as a luxury rental during the high season and have brought in 21k this past year.
I currently have 185k equity between the properties and am ready to purchase another one. I’m thinking maybe another luxury with a guest house/casita that I could continue to gain equity in and hopefully have postive cash flow as well.
That’s really the goal for me is to get into properties that appreciate in value and also generate cash. I’m pretty sure that’s the ultimate goal for all of us!!
I was also thinking about a triplex or fourplex but the quality properties seem to have better clientele/tenants. I’m very open to any feedback or suggestions so please let me know your thoughts.
Thank you for your time.
Something else to consider: multifamily buildings (dus, tris and quads, though not necessarily guest homes/casitas/MIL quarters) are not found in every zip code in Tucson. At the risk of overgeneralizing, multifamily properties are only really located in 3 or 4 area clusters.
Here is a screen shot of every 2-4 unit property sold in the last 13 months (which allows for some "smoothing" of the data points) according to the Tucson MLS:
Without painting with too broad a brush, if you want a tri or quad you're probably going to end up deciding among:
1. Central & North Central
2. Campbell/Stone corridors
3. UofA, Pima and downtown housing, and
4. South Tucson
Not a lot of options in Oro Valley, Rita Ranch, Cat Foot and other otherwise desirable parts of town.
You can also further segment based on price point, tenant demographic, whether you want to accept students/Section 8, proximity to hospitals and grocery stores, etc.
Hope that helps a Tucson buy-and-hold investor out there somewhere :-)
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