Real Estate Agent · Tucson, AZ · Member since 2018 · 112 posts · 73 votes
Hey Arizona bigger pockets. I found an off-market deal with a lot of potential opportunity and I am having trouble deciding what direction to go.
My deal points are:
9 units
1 House (3b/1b)
8 Casitas (1b/1b)
Rents
$350 for the Casitas
$850 for the house
Electric Billed Direct
Water, sewer, and trash included in rent
Lot looks to be permitted for four additional units (need to verify)
Property taxes $3200 per year
The sellers are older, retiring, and have not kept the best financials so I am working on projections right now. Any opinions are welcome. What would you do?
Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
7y
Your numbers are way off!
This is class C or D housing, so you better budget at a minimum 10% vacancy. Also, you will likely be unable to attract high quality tenants to this property. Well-qualified tenants are attracted to high quality housing.
I personally would never buy this low class of housing. The quality of real estate you acquire will eventually lead to the quality of your life... if you become a full time investor. Remember that.
Developer · Tucson, AZ · Member since 2015 · 21 posts · 7 votes
7y
What part of town is that located? How much money do you expect putting into renovation to hit your projected numbers (at least $100k?). Is it even possible to get to those projected rents in that location?
So for $500k+ you are getting yearly cash flow of $10k. I would pass.