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Updated about 8 years ago, 12/03/2016
In need of mortgage broker!
Hello BP-
I am looking at buying under market value multifamily buildings in Tucson, AZ that I can perform a value add on. The goal would be to keep my acquisition cost + repair cost = 70% of ARV so I can perform a cash-out refi when the property becomes seasoned.
I need a broker to go over loan options they would recommend for this strategy. Preferably a company that can supply an option that would wrap construction costs into the loan.
Thanks!
Simon
Simon, I am an investor in Tucson, AZ and would be happy to discuss your needs. I am also a Realtor with good networking and resources.
Let me know if I can be of assistance.
Hello @@Simon Wold - I invest in the Tucson market and would love to connect if you'd be interested. I have one property around the U right now and am in contract on another. I've talked to a seemingly endless list of brokers in that area and found one I really enjoy working with. His name is Dan Yribar with Prime Lending. (DM me if you need further assistance getting in touch with him). Great guy, wealth of knowledge and doesn't mind teaching me along the way!
Hi @Kristie Stemach, It would be my pleasure. I am available by phone, email, and of course here. You can find my contact information at the bottom of my profile.
@Simon Wold and @Kristie Eddy, Didn't realize that Tucson was on the radar of out-of-state investors. Genuinely curious what makes you choose Tucson out of all the possible places in the U.S., especially when much better returns can be found in the Midwest, for example. If you feel like sharing, would love to hear your thoughts/perspective :)
I have family that attended the University of Arizona so I have a slight knowledge of the area and what students are looking for in rentals. These rentals directed towards students can be acquired at a lower cost and cash flow better compared to my area of Seattle.
Also, from doing some market research it looks like Raytheon is bringing in ~2,000 more jobs. Sounds like the Governor is really pushing to bring more large companies to the area.
Hi @John LaMedica, Well I'm new to this real estate investment world so I don't have a long history of 'why' I suppose. My husband grew up in Tucson and went to that school. We have a rental right now, purchased at $230k, 5 bed that we rent for $2750 ($550 per room). This nets us around $1400 a month. I'd love to consider the market in the Midwest, however to be honest, I just don't know the areas at all and we felt comfortable 'learning' on our first property in an area we knew well. Are the returns significantly greater that you've found in that part of the country? I'd be interested in considering a new area. Great to know however @Simon Wold about Raytheon, that's a very large and wealthy company. Thank you for sharing that!
Thanks, @Simon Wold and @Kristie Eddy!
Kristie, I'm new to this as well, but from what I've seen, it's rare to find a 2% deal (or anything close) in Tucson, whereas in the Midwest much more common. The counter-argument to the Midwest seems to be that you won't see any appreciation, although if out-of-state investors continue to pile into those markets chasing yield, it's hard for me to see how prices won't get bid up. (I'm curious to look on Zillow to see to what extent, if any, this has already happened.) Perhaps more to the point, though, I don't think appreciation is a given anywhere at this point, so you could also make the argument that Midwest prices have less to fall.
I agree, though, that there is something very reassuring about buying in a place you have boots-on-the-ground familiarity with (esp. when it is your first property), so these are all factors I'm currently weighing.
Simon Wold Kristie Stemach John LaMedica - i purchased my first property in tucson in march of this year, and now have my 9th and 10th in escrow... a total of about 100 units and 44,000 square feet of office. I am focused mostly on u of a economy as a defensive play that is de-coupled from the macro economy at large. Regardless of rates or a brexit or whatever is coming next, the 15,000 employees and 40,000 students keep on growing and spending. Additionally the high affordability and forecasted growth (#9 in country forecasted for 2017 by realtor.com) are huge bonuses. I've spent about $15,000 on market reports this year that i'd be happy to share with you guys if you reach out to me. Cheers! Phil
Very generous of you, @Phillip Dade! May take you up on that at some point.
And thanks for your perspective as well. Didn't realize Tucson was ranked so high in forecasted growth. Will be interesting to see how the recent law passed that increases the Arizona minimum wage from the current $8.05 to $12 by 2020 (plus one week of paid sick time, etc.) will affect affordability and, more importantly, growth. It would seem we are putting ourselves at a disadvantage against business-friendly states like TX, NV, etc.
http://www.realtor.com/news/trends/top-real-estate-markets-2017/
@Simon Wold @Kristie Stemach @Ari Taleghan @John LaMedica
Wish I'd posted this sooner, but there was an apartment complex that needed a major overhaul about 2.5 miles from campus. It recently sold a month ago for $275k for i think 12 units or so, but the seller said it needed $300k of remodeling. I don't know the area, i went to a slightly better school down the road in tempe :) I'm also currently looking for multifamily, student rentals.
Here's the info:
@Phillip Dade I'm a new investor in Sierra Vista (south of you) and you seem like you've got a much better pulse of the AZ market than I. Just curious if you've read or found anything about the Cochise County and Sierra Vista area from your research. It's pretty much driven by the military presence but I wonder if there are any tidbits you might have gleaned specifically about this little area.
hi @Jerome Hanson - unfortunately have not looked at that area, for no other reason than I haven't been exposed to it. If you ever have any questions about u of a area please feel free to reach out!