The trend for Tucson real estate investors is shifting from buying, fixing and selling – to buying, fixing and renting.
Home prices are still good enough in Tucson to allow investors to buy and hold while receiving a guarantee positive cash flow every month. While there are still homes in the $30 - $60k price range – the trending range for buying and renting is somewhere between $75,000 and $110,000.
Another appealing factor for buying and holding is that the new on market bank owned homes have improved from “cash only” condition to conventional and HomePath financing available condition. This allows investors to leverage their funds into several properties rather than tying up their cash in only one or two homes.
But the biggest reason investors are seeking the buy and rent option is that rental prices are increasing – and that trend is expected to continue – at least in Tucson.
Tips for success with buying, fixing and renting:
- Buy at the right price.
- Know the real estate market, know the trends, know the comps.
- Pick a neighborhood or area you like and that works for your price range. Avoid buying "anywhere" based on price.
Know whether or not you are able to be a good landlord. And the difference between being a landlord and being a good one is knowing what you are doing.
If you don’t know what you are doing – hire a property manager to do it for you. Many property managers will discount fees for multiple units/homes and make your job of investing much more profitable in the long run!