I often work with people who are looking at their real estate as an investment rather than a home. 

Looking for multi-family properties where the numbers made sense last year was a challenge, to say the least.  With interest rates hovering in the mid-7% range for investment properties, crunching the numbers just didn't work with the prices sellers were asking, for the most part.  Cap rates in the 5's and 6's were predominant - and they just didn't cash flow.

Now, after the price drops, we're seeing a lot more properties with cap rates in the 8's - some even in the 10's.  Combine that with the fact that interest rates for investment properties are in the 6% range, and investing in multi-family housing is looking more & more attractive in the Tucson real estate market.

There are currently at least 30 duplexes, triplexes, fourplexes and apartment buildings (that aren't short sales) on the market in Tucson with a cap rate of 8 or higher.  Some folks are holding out for 10, but when is that going to happen?  When interest rates are a full percentage point higher or more?

Investing in real estate is all about cash flow, value and timing.  Why hold out for a small gain in cap rate if you are paying more for your money?  For the large or institutional investor, that may make sense with short-term gains.  For the smaller investor who plans to hold the property for a long time, a property that pays its own way, and a mortgage at a lower interest rate can be more practical.

Below is a direct link to my property search for Multi-Family Properties in the Tucson area - see if anything looks interesting to you.

Even in areas where University of Arizona students live, there are a few opportunities that might be tasty!