Buy and Hold Investments

15 Replies

Investment Info:

Single-family residence buy & hold investment in San Luis.

Purchase price: $133,000
Cash invested: $3,000

Pocket listing, purchase price $133,000 got a conventional loan (5% down payment) which came down to $3000, and Rehab cost me around $3000, but Seller gave me a credit of $3000 for Rehab materials and labor.
After expenses and all I was coming out even on the deal. I waited 4 months, and after completing my refinance and getting a lower interest rate, I am now cash flowing $140!

@Jorge Duarte glad to hear things worked out well, how does your market compare to others such as Phoenix and Tucson? I've been very interested about Arizona as a whole, at some point in the future I plan on making the move that way.

@Cody Barna Thank you! Our market here in Yuma County is quite interesting these past couple of months, in comparison to Phoenix and Tucson it'd be that there's so many New Construction and very low supply, where it has turned the market into a sellers market. Lots of California residents are moving into AZ, I've had a good amount of clients coming straight from California lately. Pretty hot market to be honest just going by the amount of people wanting to move to AZ. 

@Jorge Duarte awesome, I appreciate the insight! Sounds like prices are going to continue to rise as demand increases. I've being looking at areas North of Tucson such as Marana and Oro Valley, however I've heard Oro valley is more of a retirement community.

@Cody Barna It's a no brainer for restaurants, since Yuma have a great diversity of cultures which drives so many different styles of food! And out door activities are truly enjoyed with all year round great weather with very sunny days, one hike that I know off and Lake Martinez not even 40 minutes away where you can camp, hike, fish, float, or my favorite cliff jumping! 

@Cody Barna just to add to the conversation.... Phoenix is absolutely nuts right now. Inventory is crazy low. It’s a sellers market like you cannot believe. I own 3 class A properties that have each appreciated 10% per year each of the last 2 years. Rents are rising, population is rising, big employers are moving into the area and Scottsdale was recently named #1 place to live during the pandemic.

Obviously cap rates are being squeezed as more people take notice and the 1% rule is terribly hard to find, but not impossible.

@Whit B. I appreciate the insight, what areas would you say are still up and coming? Good places that I should look into if I’m moving from the east coast.

@Cody Barna there are so many pockets of Phoenix Metro that are booming right now it would be hard to pick one. I’d check out what’s going on in Gilbert, Surprise, and Avondale right now just to get a feel for things.

Personally I like to see where builders are pulling permits to decide if an area is on the come up.

Hey @Cody Barna ,  Have you checked out Vail in the South East side of Tucson? Many Tucson families move there as they have one of the best school districts here. The prices are about as high as Marana / Oro Valley. I guess it depends on what you're looking for. 

@Naftali Tolibas I haven't, being that I'm single with no children the school systems aren't a major factor. I really enjoy having a mountain view relatively close, in addition to a lot of outdoor activities. I'm not opposed to places south of Phoenix, however it tends to be hotter and have worse air quality. What part of Tucson do you live in?

@Cody Barna Yes, I would recommend moving to AZ.... I moved to Tucson from the Midwest 6 years ago and haven't really looked back... The weather and outdoor activities are unbeatable. The cost of living in Tucson is a bit cheaper than Phoenix and less congested. Big cities and state parks are not too far, potentially drivable. I reside on south eastside of town which tends to be quieter and family oriented but we've seen some nice appreciation and business growth over the past couple years.. Definitely a sellers market at this time.

@Cody Barna That's great! The reason I mention good school system is because it adds value to the house, but you could get appreciation in Marana and Oro Valley too. Phoenix is actually about 5-10 degrees hotter than Tucson. Just based on population, I'd imagine PHX has worse air quality. We have had a huge fire on Mt.Lemmon, but that is an outlier.  Did a quick google search and it supports my assumptions.

Ditto to @Ameera Aladimi , I moved to Tucson 3 years ago from Hawaii and I enjoy the outdoors, and the lower cost of living. My only gripe is the scorching heat during the summer, but you learn to adapt and stay indoors or do things early in the morning. I currently live 10 minutes from Downtown in a house hack and definitely recommend going that route if scaling your business is your goal and you're still single. 

Here's why I like Tucson:

1. Lower Cost of living and housing

2. Small City feel (less traffic)

3. Outdoor activities (less than an hour away depending on where you live in Tucson)

  • I'd look into Mt. Lemmon, it goes up to 8,000 ft I believe and is a great place to go to escape the heat.
  • Although Mt. Lemmon recently had a huge fire, not sure what's left of it so that could play a huge factor. 

Here's why I'd move to Phoenix:

1. More food options 

2. I'm a Suns fan lol

3. Airport brings me to HI direct flight

  • Big thing to consider if you travel alot - Tucson doesn't have alot of direct flights

The thing to consider is that Phoenix is a much bigger city, and comes with the things that bigger cities have (like more food options lol if that matters to you). 

@Naftali Tolibas I appreciate you going so in depth, you made a lot of really good points. I definitely have a few things to consider, food and flying being two of them.

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