**Organizer's note: this meetup is a make-up from last month. I got sick in late Dec & decided to postpone it to Feb.**
If you're the type to take your own financial and investment dreams seriously, and you happen to find yourself in Tucson next month, consider this your invitation to join in on the next regular meetup of the New Investor Subgroup of AZREIA in Tucson. With much of the background information already behind us (the decision to start, identifying goals, and having chosen an area to look for deals) the time has at last come to enter into the public domain and start actually searching for buying opportunities in Tucson, AZ.
Topic 1 will be "How to Find Leads in your Target Market", and will explore the twin approaches of prospecting and marketing to begin to fill your Deal Funnel with real estate leads. Come to this discussion with an open mind to discover which avenue(s) you are most comfortable with to find deals and to put yourself in front of a motivated seller... without spending a fortune on unnecessary "guru courses"
After a short networking break, we will welcome up Mark Ross (or his partner Wendy Reuter) from our local partner Good Steward Lending to discuss our second topic of the evening: "How to Fund the Deal (using creative & traditional strategies)". Come with any financing-related questions you've ever had about investing in real estate and soak up the wealth of knowledge Good Steward brings to the AZREIA group as our preferred, local financing partner.
Pre-Register here: registration link through AZREIA
The in-person portion will be held at the Keller Williams building near River/Campbell. As we always do, we will begin promptly at 6:00pm & run until somewhere in the 7:30-8:00pm timeframe. There will also be a virtual streaming of the meetup via Zoom, so if you'd prefer to stay home you may feel encouraged to dial in.
Thanks for the shout-out @Michaela Chatman! Glad to see that my reputation is preceding itself!
Avree, I'll send you a direct message to connect offline.
Happy Holidays and New Year fellow BiggerPockets members. Due to the timing of this post, my assumption is you might find yourselves in the middle (or, if you're like me, nearing the beginning) of covering your holiday shopping needs and readying your travel bags for the whirlwind of activity that usually describes the holidays. I wish you all safe travels and bid you fully enjoy time with family, and of reflection on your goals for both 2022 and onward into 2023.
If you're the type to take your own financial and investment dreams seriously, and you happen to find yourself back here in Tucson by the 2nd consider this your invitation to join in on the next regular meetup of the New Investor Subgroup of AZREIA in Tucson. With much of the background information already behind us (the decision to start, identifying goals, and having chosen an area to look for deals) the time has at last come to enter into the public domain and start actually searching for buying opportunities in Tucson, AZ.
Topic 1 will be "How to Find Leads in your Target Market", and will explore the twin approaches of prospecting and marketing to begin to fill your Deal Funnel with real estate leads. Come to this discussion with an open mind to discover which avenue(s) you are most comfortable with to find deals and to put yourself in front of a motivated seller... without spending a fortune on unnecessary "guru courses"
After a short networking break, we will welcome up Mark Ross (or his partner Wendy Reuter) from our local partner Good Steward Lending to discuss our second topic of the evening: "How to Fund the Deal (using creative & traditional strategies)". Come with any financing-related questions you've ever had about investing in real estate and soak up the wealth of knowledge Good Steward brings to the AZREIA group as our preferred, local financing partner.
Pre-Register here: registration link through AZREIA
The in-person portion will be held at the Keller Williams building near River/Campbell. As we always do, we will begin promptly at 6:00pm & run until somewhere in the 7:30-8:00pm timeframe. There will also be a virtual streaming of the meetup via Zoom, so if you'd prefer to stay home you may feel encouraged to dial in.
Wishing you a very Happy Thanksgiving weekend, fellow Tucson investor fam! For the first time in nigh a decade, I had the pleasure of hosting my own family (in the rental property next door, in fact!) over the holiday and took full advantage of someone else cooking & picking up the restaurant tab while it lasted...
Alas, with another holiday behind us and another month nearly at its end I wanted to now take some time to invite the BiggerPockets universe out to the next meetup of the New Investor Subgroup of AZREIA in Tucson... and this time we're going hyper-local!
Having covered the foundation of your investing journey (by establishing your buying niche & strategy) we now turn our attention to the next BIG QUESTION which stops newbie investors in their tracks: which area(s) should I be looking at?
If you are new to the Tucson area, unsure what type of investing strategy is most effective to use in a given area of town, or are simply interested to hear how a real estate agent might categorize every area of Tucson (segmented by zip codes) to an investor client, this meetup is for you!
Building on last month's topic, we will spend the first 20-30 minutes breaking down the top 25 zip codes in the Tucson Metro area most relevant to investors, as well as demographic and economic data to help you better understand your end buyer/tenant's spending power and motivations.
After a short networking break where we will practice our investor "elevator pitch" (in-person only) we will dive into the Elephant In The Room for far too many newer investors: the discipline of follow up. We'll explore why continuous follow-up is necessary in today's investing market, why a real estate CRM (client resource management) application is a must-have for anyone looking to build off-market lead flow, as well as several foundational marketing principles to keep in mind when marking directly to motivated sellers.
Pre-Register here: registration link through AZREIA
Hope to see several of you at the meeting in person!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Tucson.
Purchase price: $411,000
Cash invested: $125,000
A secondary update about my 2nd House Hack, now that we have both rental units stabilized as short-term rentals.
Bought a triplex with an FHA loan, securing a 2.5% interest rate and moving out of the apartment (for the last time). Property is arranged as a detached 1 bed/bath unit and a duplex: 2 bed/bath owner's unit & a vacant mirror unit.
Rehab #1 was the other half of the duplex: 2 bed | 2 bath, 1,180 sq ft
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
What made you interested in investing in this type of deal?
Goals for this deal:
- secure precisely 3 units within 1 mile of Rillito Bike Path @ Dodge Blvd: easy to access all major Tucson road cycling routes
- property layout functional for STR: adequate parking, separate backyard spaces, etc
- walking distance to Brandi Fenton Dog Park & Tucson Hop Shop (best bar in Tucson)
- pay house cleaner & landscaper to periodically clean primary residence out of AirBnB income (still working towards that!)
How did you find this deal and how did you negotiate it?
Purchased off MLS in May 2021. Multiple offers received in <2 days on market.
Despite a high earnest money deposit and appraisal gap coverage, the seller chose a different buyer initially... so this deal was won off of a backup contract.
How did you finance this deal?
FHA loan, traditional House Hack financing.
Earnest money: $10,000
Used 3% Realtor Commission to contribute towards FHA down payment; cash due at closing: $1,200
Rehab #1 was financed via a HELOC against House Hack #1 (purchased a SFR in Dec 2015)
Materials were funded by multiple credit card accounts: a stressful way to do it...
Rehab #2 including materials were ultimately reimbursed by HELOC against subject triplex, after Rehab #2 completion
How did you add value to the deal?
Rehab #1: 2 bed | 2 bath, 1,180 sq ft
Updated kitchen and both bathrooms; new lighting and paint throughout.
10 week rehab, plus another 2-3 weeks to furnish for STR.
Labor: $30k
Materials: $25k
Furnishings & Finishes: $12k
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
Updated flooring, paint & lighting throughout; added washer/dryer; rearranged floor plan; replaced broken water main line
Labor: $28k
Materials: $13k
Furnishings & Finishes: $5.5k
What was the outcome?
Despite being less work overall rehab #2 was plagued with funding issues, supply chain problems & an all-around slowly moving market of summer 2022, capped off with an appraisal which came in $100k lower than anticipated
Was able to pull out enough to pay off GC & all outstanding credit cards
Plan is to now pay off both HELOCs w/ agent commissions, having achieved financial freedom via STR income
Listings:
2/2: https://airbnb.com/h/rillitopath2
1/1: https://airbnb.com/h/rillitopath1
Lessons learned? Challenges?
So many lessons learned! Biggest lesson is that I need to buy another home next year: no staying put for too long. Need to get the next house hack financed ASAP
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Reach out to me directly for access to my Core 4!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Tucson.
Purchase price: $411,000
Cash invested: $125,000
A secondary update about my 2nd House Hack, now that we have both rental units stabilized as short-term rentals.
Bought a triplex with an FHA loan, securing a 2.5% interest rate and moving out of the apartment (for the last time). Property is arranged as a detached 1 bed/bath unit and a duplex: 2 bed/bath owner's unit & a vacant mirror unit.
Rehab #1 was the other half of the duplex: 2 bed | 2 bath, 1,180 sq ft
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
What made you interested in investing in this type of deal?
Goals for this deal:
- secure precisely 3 units within 1 mile of Rillito Bike Path @ Dodge Blvd: easy to access all major Tucson road cycling routes
- property layout functional for STR: adequate parking, separate backyard spaces, etc
- walking distance to Brandi Fenton Dog Park & Tucson Hop Shop (best bar in Tucson)
- pay house cleaner & landscaper to periodically clean primary residence out of AirBnB income (still working towards that!)
How did you find this deal and how did you negotiate it?
Purchased off MLS in May 2021. Multiple offers received in <2 days on market.
Despite a high earnest money deposit and appraisal gap coverage, the seller chose a different buyer initially... so this deal was won off of a backup contract.
How did you finance this deal?
FHA loan, traditional House Hack financing.
Earnest money: $10,000
Used 3% Realtor Commission to contribute towards FHA down payment; cash due at closing: $1,200
Rehab #1 was financed via a HELOC against House Hack #1 (purchased a SFR in Dec 2015)
Materials were funded by multiple credit card accounts: a stressful way to do it...
Rehab #2 including materials were ultimately reimbursed by HELOC against subject triplex, after Rehab #2 completion
How did you add value to the deal?
Rehab #1: 2 bed | 2 bath, 1,180 sq ft
Updated kitchen and both bathrooms; new lighting and paint throughout.
10 week rehab, plus another 2-3 weeks to furnish for STR.
Labor: $30k
Materials: $25k
Furnishings & Finishes: $12k
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
Updated flooring, paint & lighting throughout; added washer/dryer; rearranged floor plan; replaced broken water main line
Labor: $28k
Materials: $13k
Furnishings & Finishes: $5.5k
What was the outcome?
Despite being less work overall rehab #2 was plagued with funding issues, supply chain problems & an all-around slowly moving market of summer 2022... capped off with an appraisal which came in $100k lower than anticipated.
Was able to pull out enough to pay off GC & all outstanding credit cards
Plan is to now pay off both HELOCs w/ agent commissions, having achieved financial freedom via STR income
Listings:
2/2: https://airbnb.com/h/rillitopath 2
1/1: https://airbnb.com/h/rillitopath 1
Lessons learned? Challenges?
So many lessons learned! Biggest lesson is that I need to buy another home next year: no staying put for too long. Need to get the next house hack financed ASAP
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Reach out to me directly for access to my Core 4!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Tucson.
Purchase price: $411,000
Cash invested: $125,000
A secondary update about my 2nd House Hack, now that we have both rental units stabilized as short-term rentals.
Bought a triplex with an FHA loan, securing a 2.5% interest rate and moving out of the apartment (for the last time). Property is arranged as a detached 1 bed/bath unit and a duplex: 2 bed/bath owner's unit & a vacant mirror unit.
Rehab #1 was the other half of the duplex: 2 bed | 2 bath, 1,180 sq ft
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
What made you interested in investing in this type of deal?
Goals for this deal:
- secure precisely 3 units within 1 mile of Rillito Bike Path @ Dodge Blvd: easy to access all major Tucson road cycling routes
- property layout functional for STR: adequate parking, separate backyard spaces, etc
- walking distance to Brandi Fenton Dog Park & Tucson Hop Shop (best bar in Tucson)
- pay house cleaner & landscaper to periodically clean primary residence out of AirBnB income (still working towards that!)
How did you find this deal and how did you negotiate it?
Purchased off MLS in May 2021. Multiple offers received in <2 days on market.
Despite a high earnest money deposit and appraisal gap coverage, the seller chose a different buyer initially... so this deal was won off of a backup contract.
How did you finance this deal?
FHA loan, traditional House Hack financing.
Earnest money: $10,000
Used 3% Realtor Commission to contribute towards FHA down payment; cash due at closing: $1,200
Rehab #1 was financed via a HELOC against House Hack #1 (purchased a SFR in Dec 2015)
Materials were funded by multiple credit card accounts: a stressful way to do it...
Rehab #2 including materials were ultimately reimbursed by HELOC against subject triplex, after Rehab #2 completion
How did you add value to the deal?
Rehab #1: 2 bed | 2 bath, 1,180 sq ft
Updated kitchen and both bathrooms; new lighting and paint throughout.
10 week rehab, plus another 2-3 weeks to furnish for STR.
Labor: $30k
Materials: $25k
Furnishings & Finishes: $12k
Rehab #2 was the detached SFR: 1 bed | 1 bath, 900 sq ft
Updated flooring, paint & lighting throughout; added washer/dryer; rearranged floor plan; replaced broken water main line
Labor: $28k
Materials: $13k
Furnishings & Finishes: $5.5k
What was the outcome?
Despite being less work overall rehab #2 was plagued with funding issues, supply chain problems & an all-around slowly moving market of summer 2022... capped off with an appraisal which came in $100k lower than anticipated.
Was able to pull out enough to pay off GC & all outstanding credit cards.
Plan is to now pay off both HELOCs w/ agent commissions, having achieved financial freedom via STR income.
Listings:
2/2: https://airbnb.com/h/rillitopath 2
1/1: https://airbnb.com/h/rillitopath 1
Lessons learned? Challenges?
So many lessons learned! Biggest lesson is that I need to buy another home next year: no staying put for too long. Need to get the next house hack financed ASAP
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Reach out to me directly for access to my Core 4!
Greeting BP community... it's that time of the year again! If you are a rookie real estate investor based in Tucson, AZ and are unfamiliar with AZREIA: the Arizona Real Estate Investors Association... this is the perfect opportunity to join us for some amazing content on how to get start investing right here in the Old Pueblo.
This month we are returning to basics: why it makes sense to get started investing now (even in today's crazy housing market) and how to develop your investing niche (what you buy) and strategy (how you buy it). We will lay out an argument in favor of beginning your real estate investing journey no matter your goals or current skillset, as well as to overview several different strategies/ideas to get you started. Even if you're already decided on your investing strategy for 2023, I hope you will find this month's content accessible and motivating to go out and crush it.
Register here via AZREIA's Event Calendar
As we always do, we will be meeting in-person the Keller Williams Office near River/Campbell as well as simulcasting via Zoom. Please pre-register online to ensure you have the correct login information for the online link.
If you've ever want to get started investing in Tucson but "don't know what you don't know", or if you've looking for a mindset shift to shock you out of Analysis Paralysis, consider spending your evening with us: it'll change your life!
Greetings Tucson locals & investor-wannabes alike!
Over the last 6 months, the New Investor Subgroup of AZREIA has once again completed a "full curriculum" of how to get started investing in REI: those who have been attending have a much stronger foundation in how to find the deal, how to secure financing, how to run the numbers and write offers to purchase real estate. While education might not be your biggest limiter to getting started investing in Tucson, it may now be empowerment to take the next step, or lack of a compelling vision as to where you want your investing to lead you in years to come.
If you find yourself in that camp, make sure you get yourself back home after Labor Day to make sure you can attend our Local "Seasoned Investor Panel" (in person, or on Zoom)! An "experienced" investor is always a relative term, and to the newbie investor even having 2 or 3 successful deals done seems incredibly daunting. If you aren't sure:
- how to scale your portfolio after doing your first deal
- what are the mistakes & lessons learned by other investors, so you know to avoid them in your own journey
- how local investors are able to make deals happen in the Tucson market, each using unique strategies in accordance with their own background & long-term goals
- how to network with other, more seasoned investors to increase your own skillset & create more opportunities
... we will be packing the Keller Williams training room with 3 inspiring and experienced local investors to answer all of those questions and more! AZREIA will welcome 1) Dean Leonard: AZREIA Sponsor & local agent/investor
2) Colby Fryar: Multifamily syndication & BP local meetup host (Tucson MultiFamily Meetup), and
3) Daniel Clevenger: AZREIA member with multiple investments across several asset classes
Each will discuss how they got started investing in Tucson, AZ, which real estate strategies they have seen the most success with, and practical, hard-won advice on how to safely & intelligently buy your first (or next) deal
Pre-Register here: registration link through AZREIA
As we always do, we will be getting together on the first Monday of the month at the Keller William Building near River/Campbell to talk real estate and learn from one another. The meeting officially runs from 6:00-8:00pm, but folks are encouraged to come earlier or stay later for networking and to share recent success stories.
See you there!
Echoing what @Scott E. mentioned above, and hundreds of investors have mentioned over the years of the podcast: house hacking is almost always the best REI approach for anybody willing to do it. Of the many benefits of house hacking, a few which are noteworthy:
a) the low (no?) down payment requirement considerably lowers the barrier to entry for anyone who lacks capital to "get into the game."
b) due to the low initial outlay of cash to acquire the deal, there is no pressure to immediately add value & subsequently refinance to "lock in" that high ROI. So you can get away with less... sophisication... in what deals work for your buy box.
c) because there are strategies to do a house hack once per year (talk to your favorite lender), the biggest wealth-building strategy is to minimize the length of time between house hack #1 and house hack #2: if you can find something that works for your goals & close by 9/30/22, you stand to be in a great position to buy your next property before the end of 2023, again without having to put much cash into the deal.
d) also pointed out by Scott & worth reiterating: house hacking is "landlording on training wheels". Enough exposure to the LL industry to know whether you'd choose to continue to self-manage or to outsource the job as your portfolio scales... with the added benefit that you live on property and thus can instantly get over to your rental unit to assess and/or handle any issues. Compare that to buying a STR out of state, which presents logistical challenges that is the stuff which keeps investors up at night.
And even if you totally screw up the purchase and buy a property you end up not wanting to own as it's a constant headache for you to manage, you can elect to sell it in a few years & move the equity into a different purchase that produces far better returns... as now you have years of experience and better know what to look for.
PM'd you in case you have further questions about our market down here in Tucson!