Tucson investment homes represent a solid value right now. Use these tips to gain additional gains

Wanting to purchase an investment property in Tucson? Are you looking to figure out what homes set-up the best for rental/ investment properties in today’s market? Here are some ideas to help you find the most logical properties as well as those that should yield you the best returns.

1) Locate smaller homes in nicer neighborhoods. A smaller home in a higher end neighborhood generally yields better returns, rents, and is easier to rent and sell then larger homes in lesser demanded neighborhoods.

2) Try to stay in the better school districts. Renters many times will rent homes based on where their children will be going to school so focus on better school districts and even more so close to the actual schools. Again rental homes near a highly performing school will rent faster and retain a higher value in the renter’s mind and the general market then those homes without that location. Highly performing school districts in the Tucson area include; Vail, Amphi, and the Catalina Foothills school districts.

3) Buy only new or newer homes. Newer homes have less maintenance costs to you the landlord.  New or newer homes also incorporates new energy efficiency (lowering tenant costs) as well as newer floor plans that better fit the needs of today’s families and living standards. Just like regular home buyers, tenants prefer to live in newer homes with newer amenities and they will pay higher rents to obtain these properties.

4) In general one story homes rent faster and for more then two story homes. Sometimes two story homes are better options than a one however more then not going with a one story home will get the investor better returns.

5) When renting its generally best to rent your home for slightly less then its full retail rental price so that you can attract the most potential tenants and then screen them to find the best tenant in that group. By getting a lot of potential tenants you can select the one that you feel is the least risk to the property. It does you no good as an investor to rent the home for $50 a month over the homes market price if after 3 months the tenant has fallen behind and you must evict and re-rent. Long term stable tenants are the best way to make money in the home rental (home investment) business. Cater to good tenants because they lower your maintenance costs, and boost your overall returns.

6) Look to buy foreclosures as they represent the absolute best deals in the market right now. By buying a foreclosure you can typically buy 10%-15% below the market values in the neighborhood thus adding additional returns on your investment. The Tucson real estate market is short of buyers right now and with banks having to sell their inventory investors stand to negotiate great deals on investment homes across Tucson.

Using these ideas investors interested in buying/ adding investment real estate into their portfolios stand to do better then others.

If you would like additional information about investment real estate in Tucson feel free to email or call and I would be happy to discuss it with you. All emails and voice mails are returned by the end of the day and most of the time within the hour.

Where do you find what your home is worth? Here are some good places to start

When deciding if you should sell your house and place it on the market the biggest question is:

“What is my house worth in today’s market?”

That question is a hard one to answer as values are very subjective, and no two homes are exactly alike. That being the case there are several options for you to figure out what your home is worth in the market.

In Tucson you can contact a local sales agent (Realtor) who is familiar with the type of home you have and the area. A Realtor should have the  most up to date info, sales trends, and idea of what buyers are willing to pay in the market. HOWEVER do not necessarily just go with one Realtor’s assessment of your home’s value. As some times Real estate agents will over inflate the value to make it like they know more and can sell the home for more then other Realtors you maybe talking too. As an uneducated seller why not list your home with the Realtor who says he/ she can sell your house for the highest price, even if that price in wildly inflated so they get the listing?

More times then not the seller will reduce price enough to get the home in its market price range and then the Realtor gains by then at that point in time being able to find a buyer and complete a sale.  Not always is starting a little high on price (but no more then 5-10% high MAX) a bad idea. In this current marketplace it is hard to discover a true high retail price on homes and going a little higher then the sold comparable suggest is a good way to test the market.

As long as the seller understands this strategy and reduces quickly if the market does not respond does this work. Otherwise as a seller you risk your home becoming stagnant on the market where buyers will simply pass it over and then you will have to reduce to a very low price to move it.

Where else can you get property values as to what your home maybe worth (value) in today’s market?

Well depending upon how important having an accurate number is too you, you have other options. If you want an unbiased and thorough report on your home’s market value and do not want to use the services of a Realtor in Tucson, then an appraiser is the next best choice. A Tucson appraiser will appraise your home for its most probable market value using hundreds of factors. A Tucson appraiser will generally charge about $350-$400 to complete an appraisal of your home.  Once you have this figure though you will have a solid idea of your home’s market value. However keep in mind an appraisal is only one persons assessment of what the market would pay for your home. Markets can change quickly, and also appraisers can get the numbers wrong although all things considered an appraisal is a good way to obtain a real true market value of your home.

The other way most Tucson home sellers/ owners find the probable market value of their home is zillow.com. Zillow is an algorithm based system that assesses its own value on your home. Zillow is not the most accurate way to value your property but it is the fastest, you simple go to their website and input your address afterwards the value range will show up. On most homes I check against zillow the value they show is within 10% of it’s true market value and that sometimes can swing up to 15%-20% depending upon the uniqueness of the home. The more unique your home home is the less accurate the zillow value will be as many “unique” factors some homes posses such as; views, architecture, and premier location are very subjective and an algorithm based approach has a hard time valuing or knowing what humans will pay for those intangible features of the home.

If you would like additional information about your home’s market value and would like to discuss it feel free to email or call me. All emails and voice mails are returned by the end of the day and most are returned within the hour.

Properly marketing listings for sale to the homes most probably buyer yields great results for the seller. Here are some tips on how to make sure your Realtor is doing that

When selling your house there are some marketing ideas/ techniques that work better then others. In today’s market the marketing can sometimes be the difference from a buyer wanting to go see your home and never knowing about it. The marketing behind your home is what gets buyers to excited to see it and then ultimately buy it. “Price” the other side of the marketing scale will always be a defining factor (main factor) in if a buyer feels your home represents the best value in the market for them to buy YET without proper marketing regardless of price buyers will never want to view the home.

Still not sure home marketing will make an incredible difference in if your home sells or not, and ultimately what price a buyer is willing to pay? Think about this-

Let’s take an extreme example and say a home is listed for sale for a very low price. No pictures, no description, nothing just size, price, and area. How many buyers would just gloss over it and never go see the home for sale?

A great majority, of buyers would dismiss the home and say the home must be in disrepair or have something else wrong with it if the seller have nothing to say about it right?

That being the case the potential buyer pool is smaller and therefore less competition is present for the home resulting in a lower price. The home may still sell just because the price alone is a marketing function that some buyers will go the extra step to say: “This home is low in price let’s just not pass it over”. Again price is working as an independent marketing tool/ variable/ factor in the home’s ability to sell. (which is always the case)

Now on the other side of the coin let’s take a home that maybe at first look is a bit high in price, however the home offers some of the best upgrades in the marketplace. The listing agent has done a great job with the pictures, video, ad placement, and identifying the buyers most prone to paying the higher price for the higher end finishes. (Generally busy professionals who have disposable income and not a lot of time to tackle their own projects.)

Now this home’s buyer pool will be very deep and the advertising/ marketing approach is targeted at the buyers most likely to pay the higher price for the better finishes. If the marketing was not top notch and exposed where this home shines at then the price would never bring anyone past it too see it.

Everything between these two examples is where marketing can make the difference in getting your home sold and the price a buyer is willing to pay. Marketing is like the “model home” builders spend tons of money decorating and making just right. The actual home you buy is nothing like the model (with exception of the floor plan) but the “model experience” of what your home could be draws you into see it and makes you want to buy it.

So where can/ should your Realtor market your home for sale?

The obviously is MLS which is only a start, after that enhanced listings on Realtor.com can also help in some situations.

Great pictures, video, and accurate info with the home’s best features goes without saying to showcase your home.

Other marketing approaches that your Realtor can use to get your home sold are facebook.com ads and google adwords to spotlight your individual home. These approaches allow your agent to key into individual user profiles (on facebook) to put your individual home in front of those potential buyers.

Your Realtor can select profiles that would be the most probable for the best buyer for your home. For instance:

Realtor trying to sell a downtown condo could select user profiles of younger professionals (by profession ie: lawyers, accountants, nurses etc) and then dissect it from such differences as exact age, college, interests, etc can all be directly marketed too.

On the other end with Google Adwords your Realtor can buy ad space along side exact phrases users type into the search engine. So in this example how nice would it be for your home to show up right next to a buyer physically typing in the words “downtown condo’s for sale”? Few Realtors go to this next level of trying to put your home directly in front of the most probable buyers in real time when they are searching, yet this is in today’s marketing world not only possible but in my mind a “best practice” and should be used for all listings for sale.

Very few Realtors even know about these marketing possibilities as the field is still somewhat new and evolving. The Realtors that do however command a great advantage to being able to develop advertising/ marketing strategies designed directly around your individual home….

If you are interested in listing your home for sale or would like additional info about what your home could possibly sell for in today’s market feel free to call or send me an email and I would be happy to discuss. All emails and voice mails are returned by the end of the day and most are returned within the hour.

Tucson builders are starting to roll out some serious energy efficiency packages with their new homes. Meritage is the first to roll theirs out but I assume the others will follow shortly

In Tucson I am starting to see production homebuilders start to unroll some very serious improvements into their homes so that they can better combat the low prices foreclosures in Tucson are offering. Meritage Homes is first to the market with new homes that are incredibly efficient and some of the best new homes on the market right now. Look for other Tucson new home builders to start copying this trend to ultra energy efficient homes that have never been available in the track building business previously.

How effecient are these new homes Meritage is building in Tucson?

Well very actually the figures that a Meritage sales rep gave me today are very enticing as they should save annual energy costs of your new home vs other homes in the market by somewhere close to 80%! These stats come from tests done on their homes versus others in the market using a rating system called a “HERS Rating”. Basically in Tucson the ratings work out to this: (The lower the score the better)

An older Tucson home built pre-1990 on average has a HERS Rating or about: 130

A 2005 home has a rating of about: 100

A home normal built new home in Tucson (doesn’t have any super upgrades for efficiency) rates about a: 75

A new Meritage home with their newly incorporated energy efficiency standards comes in at about a: 26!

So how do they do this?

Basically Meritage is using building materials and features only custom homes have featured in the past. Their homes have a ECHO Solar Electric/ Thermal System that uses a solar Photovoltaic energy system with cells within the roof tiles to take energy from the sun and use it in your home. Additionally Meritage is using spray foam insulation instead of the more traditional batt insulation. The insulation improvements of the spray foam is not only much more expensive to install but also much more efficient.

The photovoltiac electric system is rated to provide roughly 10,000 kWh’s worth of annual power to the home, The average home uses roughly 20,000 kWh’s of power so this system should provide about 50% of your families annual electricity needs. The package Meritage also includes a Solar Thermal water heater, Thermal air conditional on top of the solar electrical system. This total system provides 2 times the amount of energy most other solar systems provide. This power system isn’t everything though.

Another part of the package is a high performance “weather sensing Irrigation system”. The system literally downloads weather data to your system that automatically shuts off the irrigation to the entire system or to specific areas (as needed) dependent upon if your home is getting rain. When rain sensed the system is shut off saving you and the environment wasted water.

Other parts of this system-

-Energy Efficient Lighting

-Energy Efficient Appliances

-LOW VOC (Volatile Organic Compounds) carpets, paints, and finishes

-High Performance Windows

Are Tax Credits Available For Buying This Type Of Home?

Absolutely as a buyer you can receive Federal Tax credits off of the system Meritage is unrolling. Basically you can get back up to 30% OF THE COST OF THE SYSTEM BACK IN TAX CREDITS! Then you can also get up to $1,000 from the state of Arizona. (25% of the total cost up to a max $1,000). Since the system is about a $15,000 add-on as a buyer you can claim up to $5,500 in total tax credits. (*Although always check with your personal CPA as everyone’s situation is different.)

If you would like additional information about the energy efficiency packages being rolled out by Tucson homebuilders or more about the Meritage specific package, or would like to know more about purchasing a home like this feel free to email or call me to discuss. All emails and voice mails are returned by the end of the day and most within the hour.

The home buyer tax credit is starting to be talked about again. Will it happen who knows?

“homebuyer tax credit” have been stirring. Ideas from everyone getting a tax cut, to only a cut for buying foreclosures and short sales I have heard kicked around. Officially the a HUD spokesman says no talk of bringing back the tax credit is actually going on yet others say it is being talked about more and more.

However on Sunday HUD Secretary Shaun Donovan (in an interview with CNN’s Ed Henry) said that: (here is the transcript)

HENRY: Let’s end on two quick points. First of all, along the lines of this debate, there are some critics saying the federal government can’t keep up the intervention to try to prop up the industry much longer. Along those lines, you mention the $8,000 first-time home buyer credit expired a couple of months ago. Many people believe that’s why some of the housing numbers were so bad this past week. Is that housing credit now dead?  Or does the administration think you should try to revive it to try to prop this industry up?

DONOVAN: Look, Ed, I think it’s too early to say after one month of numbers whether the tax credit will be revived or not. All I can tell you is that we are watching very carefully. I talked earlier about new tools that we will be launching in the coming weeks, and we are going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers.

So it seems plausible politicians are thinking of bringing back a tax credit could be stirring after 2 months (one really bad one in July) of down real estate market stats/ news.  There is no doubt the previous $8,000 tax credit was a huge boost to the market, and I know buyers that bought homes specifically to obtain the $8,000 credit, even though I think that is a horrible reason to buy a home some people did it for that reason.

I would personally rather not see the credit come back having an incentive does help the market. However it is only a shot in the arm and makes for a much more volatile marketplace that starts to rely much more on “incentives” to gear up to make a purchase. Not only that it’s very expensive to do because not all home buyers bought because of the tax credit a vast majority were going to buy anyway (probably about 85%-90%).

If they do start working up a new tax credit it should be for all buyers regardless. Why should only first time buyers get a credit? Also the worst ideas would be those that only push credits for foreclosures the reason? Well yes foreclosures are a concern but why in the world punish regular home sellers who already are having a hard enough time selling in today’s market by saying “here is another reason to buy a foreclosure”…

So in my mind make the tax credit smaller maybe $4,000 or even better $2,500 for any home purchased for a 6 month time frame and then that’s it. The market needs to naturally stabilize on it’s own although by watching the numbers the market (at least in Tucson) is pulling back pretty hard right now. Next months market stats will be very important to see where the Tucson market is headed.

If you have questions about the Tucson real estate market feel free to leave a comment, or call. email. All emails and voice mails are returned by the end of the day if not within the hour.

The word "listing" referring to homes for sale comes from real estate salesmen who in the 1800's would stand on street corners with top hats all day. Buyers interested in buying a home would then ask them: "Can I see your list of homes for sale". This turned into "listings" and eventually it turned into the Realtor industry we know today.

do any real sales volume possibly leaving you with a Realtor who only knows slightly more about the process then you yourself do. In the Realtor sales business the rule of thumb is roughly 20% of all the agents (there are currently just under 7,000 active Realtors in Tucson right now) complete 80% of all the sales within the city. Since the market conditions have become much more tough I would say that percentage has even grown to 10% of all Tucson Realtors complete 90% of all the home sales.

What’s the difference between a Realtor and just Real Estate Agent?

There is a slight difference between the two that the public doesn’t always pick up on. The difference is a Realtor is a member of the National Association of Realtors, where as a real estate agent doesn’t have that affiliation but is still licensed. Being a member of the National Association of Realtors brings with it a higher ethical codes to abide by, member dues, and additional training. None of it is really difficult for an agent to do, but if I was a consumer I would only work with a Realtor as the standards are higher and more is expected of them then just a state licensed real estate agent. If a Realtor doesn’t abide by the Realtor codes they can be reprimanded and in some cases thrown out of the association.

Which real estate agencies/ companies are the best at selling homes in Tucson?

This like all things depends and only a very generalized answer can be given for certain types of sales. The top selling Tucson real estate companies/ agencies are currently:

Tierra Antigua Realty

Long Realty

Coldwell Banker Realty

Re/Max

Realty Executives

These companies are in no particular order and there are scores of smaller real estate brokerages in Tucson that do great work. Tierra Antigua Realty is the largest locally owned real estate agency/ company/ brokerage in Tucson as the founders Matt and Kim Clifton had been with Long Realty for many years before setting up their own shop in September of 2001. The growth of the company has been exponential since then.

Realistically the most important part of being represented by a Realtor in Tucson is the individual agent/ Realtor that represents you. Regardless of the agency they work for you need someone that you can trust, and that knows the real estate market inside out.

For sellers you will also need someone who has a lock solid marketing plan to get your home out ahead of the others it will be competing with. Buyers consequently will  want to focus on someone who is very accessible and has a lot of connections as sometimes the best deals are sold BEFORE they hit the market. Other times deals present themselves though networking etc, and as a buyer if your agent is connected these relationships can get you into homes before the general market knows about them.

I have found some of my buyer clients great deals because I’m known to represent a decent amount of buyers in the market and sometimes a seller will just want to sell and the word will come to me that “next week the sellers are lowering the price by (some large number)”. I then make sure I have my buyers there before anyone else thus allowing them first shot at the better deals in the marketplace.

If you have questions about Tucson real estate or how the hiring of a Realtor for your needs would work feel free to call or send me an email and I’ll be happy to discuss it with you. All emails and voice mails are returned by the end fo the day and most are returned within the hour.

Tucson real estate is offering very respectable returns for investors looking for regular and relatively safe investment alternatives

Interested in investing in real estate with solid returns? In Tucson Arizona a lot of foreclosure real estate and homes are now yielding 7%-12% in CAP rate due to the serious real estate downturn in prices over the past 5 years. Foreclosure Homes now can be purchased and rented the next day with returns of over 10% in many cases right now in Tucson AZ. The market in Tucson is currently short of buyers and seller’s specifically banks holding large inventories of homes have to sell what they have. The cost of holding the homes and maintaining them is simply too high of a cost for banks to be interested in doing resulting in an excellent time for buyers to step forward and make deals.. This being the case buyers/ investors coming to Tucson to buy foreclosure homes priced between $100,000-$200,000 stand to make pretty solid returns regardless if prices start raising again. The reason for this is regardless of prices an investor can rent the home and make 7%-12% almost all day long on just simple rental income.

What else does Tucson Have going for it to make real estate a viable investment alternative?

Tucson and also the state of Arizona is growing incredibly fast. In Tucson you have world class weather, scenery, and also a newness that few areas of the USA can compete with. Low cost of living, as well as a population explosion that has been going on for over 100 years in Tucson should show investors that Tucson is a very viable option to have some of their investments tied too. All these people need to live somewhere as a reasonable percentage of residents are winter visitors and/or retirees looking for a place to stay for a year or two until they feel comfortable making a purchase in the new surroundings. Still many more simply move to the Tucson area for the fast growth the city is experiencing. With the Tucson metro areas total population nearing 1.2 million residents with projections of over 2 million by 2025 it’s safe to say buying real estate in the area should offer potential few other real estate investments do due to Tucson’s unique growth history.

What areas and type of real estate would make the best investments or returns?

This is a very specific thing to your own wants and risk tolarances but for the most part I believe the lower priced foreclosure properties in the higher end or nicer areas of Tucson should yield the best total 5-10 year returns. If and when home prices start to raise in Tucson the higher demand areas will continue to be in demand with the population growth of the past 50 years and the next 25 years these areas will only continue to become more coveted. By owning a property in these areas you benefit from the having what is highly desired as well as being able to get solid returns from rental income in the mean time. Also keep in mind the higher demanded areas also rent faster and rent for more as already explained they are simply better areas for Tucsonans to call home. These areas as an expert in the local Tucson real estate market would be the North side of Tucson, NW (including Oro Valley), and the upper NE regions of the city. Also some individual neighborhoods not in these areas that should do really well including but not limited too are; Starr Pass, Houghton Corridor, and the Sam Hughes neighborhoods.

If you would like further assistance in possibly investing in Tucson Arizona real estate or just have general questions about it, feel free to email or call. All voice mails and emails are returned by the end of the day if not within the hour.

The Tucson housing market has taken a serious turn downward. While demand was expected to be lower after the $8,000 Federal tax credit expired, it has turned even sharper than anticipated. Demand is currently staying on the sidelines. If these numbers continue, prices in Tucson can only go down. Tucson could be looking at a 15%-25%, 12-month price decline in housing if demand stays at these low levels. It will be very interesting to see if next month’s stats (August 2010) continue at these low levels. If so, then the beginning of a new trend will have been started. If, however, they are stronger than this report (July 2010), it can be argued that the July numbers were just the bottom of the lack of demand after the Federal Tax Credit had expired, which was anticipated and expected. Next month’s market stats will be some of the most anticipated ever in the Tucson housing market.

So what should buyers do?

Well, it depends. With interest rates so low (averaging about 4.5% for a 30 year fixed mortgage) and home prices low, buying a home is more affordable than ever. However, with the lack of demand present right now, prices will come down even more yielding buyers who wait for a better deal. In some cases, buyers can already negotiate great deals because sellers are having an equally hard time trying to figure out where the local real estate market is going. If, however, buyers start coming off the sidelines due to raw affordability, then buyers should step up now and buy as the market will have probably bottomed. Foreclosures are where the best deals are being hammered out, and pretty much all offers are being reviewed by lenders as they HAVE to sell their inventory regardless of demand present in the market. Look for foreclosures on the market for over 100 days to get the best bottom dollar deals and prices.

What should sellers do?

Sellers need to be competitive in the market. The demand is very weak and a seller’s price, condition, and marketing package behind their home sale needs to be top notch. Anything less won’t result in a sale. Sellers should also realize that it’s likely their home will be worth less next year. Unless demand makes a serious rebound, prices can only go one way (down). If you are considering selling over the next 24 months, selling now and being realistic today should result in more money in your pocket than trying to wait. Now this is all dependent upon the demand that enters the market. To my eyes, we are sitting at a 10-year plus low in demand and it’s completely possible most of this is due to the pull forward in demand the Federal tax credit created. Although, that being said, I didn’t expect to see any more than a 25% drop off in sales, volume, etc. The market is currently showing a 39% decline in volume, and a 33% decline in unit sales. Next month’s report should give a much better insight into where the market is headed.

If you have questions or would like additional information about the local Tucson Arizona real estate market, feel free to call or email. All emails and calls are returned by the end of the day and most within the hour.

This home is one of the best values in Tucson even at full price the home is yielding about a 11.8% CAP Rate

When analyzing the lower end of the Tucson real estate market there are quite a few low priced deals to be found. These homes are great for first time buyers looking to get in at below market price points, investors looking to buy and hold/ rent, or in some cases a few of these are good matches to be fixed and flipped for a profit.

So what can you get? Well the prices range buy all of these homes are under $75/sf and in some cases way below. All of these homes are also on the NW side as I know that market along with the north side the best and can spot really solid deals somewhat easily.

Now all of these homes are on the lower end of the price range and that being said the first one is a small home the stats look like this:

MLS#21023591- 1369sf, 3/2, in Edgebrook Village (just off of La Cholla and Ruthrauff) priced at $84,900. That works out to $62.02/sf, and the home offers a 2 car garage. The home like all of these on the list needs work but it doesn’t appear to be a major rehab, although buyers with a government backed loan (VA and FHA) may have issues obtaining financing on this home. A CAP rate on this home would run roughly 9.13%

MLS# 21020334- 1338sf, 3/2.5, in Countryside (just off of Hartman lane north of Cortaro) this home is priced at $89,900 which works out to $67.19/sf. That dollar per square foot is a really low one for the neighborhood this home is in. However like all things there is a trade off this home looks to need a LOT of work. That being the case its already been on the market over 100 days

$89k in Countryside represents a solid value on the NW side

and I would be willing to bet a cash buyer could get some very favorable terms from the bank that owns it as it is a foreclosure listing. Fixed up and nice I think this home would sell fast for the $130k-$140k price range. If a buyer can get the home for a $70,000 price (or less) that leaves a nice margin for a professional flipper to get in, then put in $20,000 to $25,000 and resell for $130k netting themselves $35k-$40k in gross profit. Fixed up (with about $25k in repairs) would yield about a 10% CAP rate for investors looking to hold.

MLS# 21027124- 1669sf, 3/2, in Orangewood Estates (just off of Ina and Thornydale) This home a single story just under 1700sf has A/C, desirable location, and a POOL for $97,500… At that price this home is $58.42/sf. Again this home needs work but the right investor or flipper could make some repairs and probably knock a decent amount off the list price. The fact the home offers just under 1700sf, and a pool on over a 1/4 acre makes the case that fixed up I have seen these types of home sell in the $150k range all day if not slightly higher. Get a purchase price of $80k-$85k use $25 on repairs and an an investor you are in at a $105k-$110k price leaving plenty of room to sell or rent out for a nice cash flow situation. This home probably isn’t for a first time buyer unless one is able to make serious repairs from the start. A CAP rate on this home would run roughly 10% also (fixed up)

MLS# 21023950- 1676sf, 4/3, in Edgebrook Village (just off of La Cholla and Ruthrauff) is an amazing value for a NW home that is move in ready. This home is super clean, has some updates, and 4 beds with a 2 car garage listed for $104,900! At that $104,900 price the home is priced at in incredible $62.59/sf. Since the home is so clean first time buyers can use FHA and VA financing on the property and get great rates. To give those an idea a mortgage payment would run roughly $550-$600/mo for a house/ mortgage payment on this home even paying full price. Since this home (like the others) is a foreclosure the probability the home can be negotiated much lower in price is highly likely. CAP rate on this home is in the 9.71% range.

Probably the best value in NW Tucson right now at over 2000sf listed at $147,900

MLS# 21022414- 2073sf, 4/3, in Cortaro Crossing, (just east of the Thornydale and Cortaro intersection) is this couple of year old 2 story 4 bed home in a highly desirable NW Tucson neighborhood listed at a phenomenal $147,900 or $71.35/sf. This home is a amazing deal for any NW buyer in the market under $150k. Investors can buy the home and rent it and be cash flow positive by hundreds of dollars a month. At 20% down the mortgage payment would be roughly $650/month, rents for a home like this should EASILY fetch $1000-$1100 (possibly more but that’s conservative).

That nets an investor a positive cash flow of roughly $350/month and a cap rate of 11.8%!!!  (that is with averaging $12,500 in yearly rents AND a buyer paying full price!)

More realistically I believe an investor of owner occupant could pick this home up for below $140k and for investors that would bump the returns even further up and push mortgage payments even lower. For first time buyers using a government loan would make for a payment in the $775/month range. For over 2000sf thats a pretty hard value proposition to turn away from.

If you would like additional information about these homes or other investment/ good deals in the Tucson real estate market feel free to call or email and I would be happy to discuss them with you. All emails and voice mails are returned by the end of the day and most are returned within the hour.