Buying, Fixing And Renting: Know, Know, Know Makes It A Yes!

By
Real Estate Broker Owner with KGC Properties LLC, Tucson Property Management & Real Estate

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!

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Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .

 

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Ambassador
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Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

Hi gabrielle... yes we see more and more rental requests these days

 

 

 

April 22, 2012 07:27 PM
Ambassador
786,673
Bob Crane
Forestland Experts! 715-204-9663
Woodland Management Service

Thanks for sharing this with us Gabrielle, it sounds like a summary of the business plan that I am very happy to have taken to my banker a few years ago.

April 22, 2012 09:27 PM
Rainmaker
879,367
James Dray
AR., MO., or OK. I can find the home for you.
Wise Custom Realty

Morning Gabrielle first of all congrats on the feature.  As I have read it is going on in other parts of the Country.  Enjoy the day

April 23, 2012 03:09 AM
Rainmaker
724,106
Gabrielle Kamahele Rhind
Broker/Owner
KGC Properties LLC, Tucson Property Management & Real Estate

MORNING JAMES!  Well thank you - I really like seeing your comments all the time on my posts!  I appreciate seeing you here!

MORNING BOB!  Good for you - I've always said real estate is a long term investment and works for many!

MORNING ERICA!  Nice to know it's in your area as well!

MORNING LEILANI!  One at less than $100k - your market is getting better!  We still have a high inventory of homes under that amount - but good for you on the holding end!

MORNING ANTHONY!  Thank you - we get many California investors looking at our market - how are things in the SF area for renting?

MORNING MATT!  Glad yo hear this is happening in several areas - like yours!

MORNING IRA!  I agree - if you can - this is the way to go right now!

MORNING RICHARD!  It depends on the area. And the best investment right now for rentals are SFR.  But I'll give you an example of two that I wrote over the weekend - 3 bed/2bath, 1586 sq ft, 2 car garage, $85k. Rent amount $1100 a month.  Another very similar, but 1300 sq ft, needs about $2k of work, $78k.  There are many between $100 and $120k that are in excellent areas not just for rent but for long term appreciation!  Hope this helps!

MORNING RICHIE!  I agree - for the past 25 years - that's what I've done - I've done my share of fix and sell but for the most part, buying and holding is the best for me!  Thanks for the comment!

MORNING MIKE!  Great to hear!  

MORNING HARRY!  I agree - though some investors are excellent property managers - they often find it's easier to let someone else do that part while they focus on investing.

MORNING CANDI!  Good to hear that this is going on in many states!

MORNING MICHELLE!  Well thank you!  I like what you wrote too!

April 23, 2012 04:51 AM
Rainmaker
398,598
Richard Yates
Because Experience Matters

Hi Gabrielle, Thank you for providing those details.  First of all, Great Prices!  Don't those figures add up to a positive cash flow for all investors?  Just out of curiosity, and I will check back for your answer, what are your property taxes in Tucson?  I hope you get all of your offers accepted and best wishes always.

April 25, 2012 02:39 PM
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Rainmaker
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Gabrielle Kamahele Rhind

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