Tucson vs Phoenix long term rental market?

Question

I am interested in comments comparing Phoenix and Tucson, Arizona markets for long term and BRRRR strategies. I am primarily interested in small multi-family. I have been focused on Phoenix since I am local here, but it looks like pricing and cash flow may be better in Tucson. What do you think?

Andrew McGuire · Answer

David,

Can't speak for Tucson but I've BRRRR'd 3 properties in the last 2 years all in Mesa/Gilbert. Prices and rents are going up so fast its making BRRRR not that difficult, especially if you are open to buy small multi fam and combine strategies like STR and Co Living you can absolutely crush it right now.  The more expensive mortgage because of PP is easily offset by how fast rents are increasing if your concerned about casfhflow post refi. #'s on one of the Mesa triplex: Of course we don't want to speculate that prices will keep coming up, I still try to find deals that are PP + Rehab Cost = or less than 85% ARV to help with BRRRR method

Mason Weiss · Answer

I don't have any properties there but could refer you to our investment brokerage based in Tucson. Shoot me a private message if you are interested in their information.

Mason Weiss · Answer

I think both are both are good options. It all depends on finding the right deal in either market.