All Forum Posts by: Emily And Eric Erickson

Ramsha - most of the regulation for a STR is controlled by the neighborhood HOA. Some HOA's are super strict (especially in neighborhoods built in 2010 and newer) and some have zero regulations. The older the home and the closer to the city center, the less likely an HOA even exists.

Hope that helps!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $168,000
Cash invested: $28,000
Sale price: $245,000

Converted primary residence into buy-and hold in 2020 and sold in 2024 when tenant left and partners needed to go their separate ways

What made you interested in investing in this type of deal?

Helped solve a need for the owners and gave them an opportunity to be real estate investors without having to get their hands dirty

How did you find this deal and how did you negotiate it?

Partners owned as primary residence and then moved out to a new home and wasn't sure what to do with it

How did you finance this deal?

Partners had it financed

How did you add value to the deal?

Made the repairs needed to get it rent ready, and then found tenants and acted as point of contact for them

What was the outcome?

Successful 4 year rental with annual rent increases and a great asset that both appreciated and depreciated at the same time. Amazing!

Lessons learned? Challenges?

Single bath houses are both harder to rent and sell then 2 bath houses

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Listing agent was amazing when we were ready to liquidate. Emily Erickson at 520-834-7543

Mary

Tucson has many types of strategies that work, including student housing. The more important question is what strategy works best for you and your style and capacity. Being in San Diego should be a factor on which of the below makes sense for you

Student housing is definitely not for the faint of heart as you are managing 18-22 y/o's and their long distance parents and you definitely need a strong maintenance team and ability to turn units quickly every year. As noted before, they have higher rents and have higher service needs and with the UofA in the middle of town, there is lots of interest and competition in this niche. It is definitely NOT an untapped strategy for Tucson with big money condo builders doing all they can to squeeze out single family rentals that are farther from campus.  

Medium term rentals have a place here as well with a large hospital network and retired population. Key here is location and doing the legwork on which marketing works best to keep them filled

Airbnb is also very lucrative in Tucson, and I have one unit myself. Turnover management and booking strategy are the keys of success for this type where you essentially running your own small hotel. For Airbnb areas in Tucson, check out my more in depth post on it here: https://www.biggerpockets.com/forums/530/topics/1036147-str-...

Long term investing is where I have put the majority of my personal investment focus into. The initial set up can be quite intensive but once filled, are a predictable source of cash flow. High interest rates and prices are putting a significant squeeze on cash flow numbers currently for this class, so finding the right deal does require more patience

Which of the above seems like a good fit for you? 

 It is very true, big, institutional money is investing in the student housing sector pretty aggressively and if you don't have a house within a city block of the UofA, you are actually seeing rent rates go down as they lose out to the newer, nicer condo style buildings that have been built. 

We focus more on the long term buy and hold properties and some STR in the NW and East side of town

Nice job, are both units rented out? The ADU is a great add to the Tucson market

 Yvonne - your experience in Tucson is a great building block. When was the last time you were here? 

I have helped several investors with both SFH and multi-family in the Tucson market. Check out my past deals on my bio to give you a flavor of what is here

 I would be happy to talk you through the process, let me know when you are available to talk

We recently helped a young, ambitious couple purchase their first long term rental property here in Tucson AZ. They impressively had all cash to invest even both were under 30 years old and they had a very clear investment goal to 1) be in real estate and 2) make more than 6% cash on cash return. 

They did both with this great deal

They bought the below property for just under $500K and it has 3 rentable spaces - the main house, a converted garage studio apartment and a separate guest house that is a 2 bedroom / 1 bath. And to top it off, it is just under 1 acre in size, so plenty of room to park their RV whenever they aren't using it AND they plan on putting the RV on Airbnb as an additional income source. 

All told, they will conservatively generate a 10% cash on cash, with the upside on how much the RV rents while protecting their nest egg 

Are you ready to invest? 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $185,000
Cash invested: $40,000

First seller finance deal. Main issue was getting the tenant out that the seller didn't want to deal with. Learned some lessons there but got it rented to a great little family this year so super stoked.

What made you interested in investing in this type of deal?

Focus has always been single family homes and this fit the profile

How did you find this deal and how did you negotiate it?

Another agent had a lead on someone who wanted to sell it off market since the tenant was still inside and was a sticky situation

How did you finance this deal?

Seller financed it at 6% interest

How did you add value to the deal?

Did what the seller didn't want to do - get the tenant out and get it rent ready

What was the outcome?

Rented this year to a great young family

Lessons learned? Challenges?

Sticky tenant issues take a lot of patience and sometimes a lawyer. We used all the resources available to get it to the point that it would cash flow again

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I learned a lot and am willing to help others replicate the same thing when they are ready