First Time Investor in Tucson

[Jennifer Reddig]

I am a first time investor with my spouse and we are looking at properties in Tucson, AZ. I have been advised by my real estate agent that it is not a good idea to buy investment properties right now. If I still want to buy something, I should buy something that will qualify for a conventional loan. At first, I wanted to buy a property with the BRRR method but I am just not sure anymore. Are there any other Tucson investors that are buying right now?

[Andrew Kiel]

@Jennifer Reddig - This is a wonderful time to be buying right now, ok that's my opinion, but let me add some clarity.  

As @Bobby Hosmermentioned above, rates are still historically very low. Talk of inflation is everywhere, and I agree. You see it going out to dinner, at the gas pump, in the grocery store, or have you even looked at vehicle prices lately?  What better way to keep up with or beat inflation than to lock in a nice low 30 year fixed rate loan (for investment) in the 4%'s?  Yes, the house prices are up but so are rents.

Houses we're buying in Tucson today are making historically AMAZING returns!  With the model we use (long term lease option exit strategy) we are easily seeing $500-800 per month NET cash flow on the right properties.  Granted, this is not as good as a year or so ago, but still a dream compared to 3-5 years back (where $500 per month net was incredibly difficult to find).

As @Sam Ohanesian notes above, if the numbers make sense, it's a good time to buy. You do need to be selective and buy the right properties bases on YOUR model and your numbers. I know you mentioned BRRR method, and those are certainly our there as well.

The last house I purchased (on MLS), was for $245,000 with a payment of under $1200 per month, income is $1895.

One final thing I'd like to note.  I certainly don't have a crystal ball and have no idea if prices will continue to go up, I tend to think they will, but the market will do what the market will do.  The question like to ask is what is my risk and risk tolerance?  If the market does pull back considerably, does it matter if I'm a long term hold investor making 500+ per month?  Can I afford to lower my rent by 10-20%/several hundred dollars per month and still make a profit if the rents really come down?  Right now, I can easily answer yes to both.

Great job in doing your own research and taking the time to form your own opinions!