All Forum Posts by: Scott R.

Going to look at a complex tomorrow.. had a few questions and wanted to run some stuff by you experienced investors. I am unexperienced.. yet educated. Own 1 SFR for a year now.. recently bought another thats being rehabbed. Both will be rented. Although I have been researching this stuff for months, helped a friend with a 80 unit he bought (i actually lived on site and did management) and I THINK im ready to persue my own deal. Came across a deal or so i think..
OK side of town.. should be able to rent easily.

32 Unit
High occupancy currently
Purchase Price $515,000.. hopefully $500,000.
rents average $400 per unit.
$12,800/mo. fully occupied..
$11500/mo w/ 10% Vacancy
taxes $8250/yr = 700/mo
Insurance $4500/yr = 375/mo (seems low, info from owner)

BELIEVE (keyword) the following loan can be obtained
$20,000 dn
remainder carried at 12%
which would put me right at $5,000/mo with purchase price of $500,000.

$5000, 700, 375 = $6075/mo piti
based on the 11500 mo with 10% vacancy that leaves me roughly
$5,500/mo for maintance and such..
will be living onsite doing management myself.. shouldnt be an expense there except my own time.

SHOULD be a decent deal would you agree!?
Basically I DO NOT have $50,000 in the bank for repairs if such were needed.. but with the $5,000 a month for such I believe it should be do able.. lots of plumming and AC updates.. seems to be in pretty good condition.

PLEASE tear this apart.. shoot it down if it needs to be done.. wanna hear what you guys think.
THANK YOU!

Interested in hearing more about your financing options for mexican real estate.. know several people interested in the newer condo sky scraper buildings on the beack in rocky point..!
You actually located in Tucson~?
I personally am going to Rocky Pointe in a few weeks to look at a condo with a friend.
-Scott

Its not really realistic right now to buy anything in Tucson to wholesale except maybe forclosures but I dont believe there is enough time with most forclosures to actually wholesale the deal unless you have a buyer lined up. Im from Tucson, justed move to Amarillo and actually had lunch with Ryan last week, but I moved here for the real estate. Problem being at this time in tucson everyone thinks there house is worth way more than it is, and builders are dumping what they have. the ghetto area SFR are selling for $150,000 all day long in tucson, where as in Amarillo there $30,000. It's a different market, I can drive through most older neighborhoods in Amarillo and find a vacant house on almost every street, in tucson, theres NEVER a vacant house, if its vacant is probablly on the MLS, Anyone who bought over 3 years ago, who has equity in the house knows they do, IVE NEVER seen a house as run down as 1/2 the houses here that are cheaper are. Different areas, different houses.
I dont know of ONE wholesaler in Tucson except the guy cant think of his name from ug buys ugly houses.
233 E Los Reales Rd
Tucson, AZ 85706
theres your first lead.. got passed on to me from a friend.. guess it needs like $50,000 in work but they want out of it.
Other than that good luck. not trying to be rude just being truthful.
MARKET IS FLOOODED with houses, yet most of them are on the market forever. Cause the people are going to loose money and dont wanna take less than they HAVE to.
Average house in tucson.. around $250,000
id guess the average in Amarillo is half that.
Theres houses for $20,000 in amarillo, Ryan has one himself..
they might need work but there avaible.
In tucson, that same house would be $130,00ish.. in similar condition and i dont even know what all the house needs.. it sucks but its the truth.
from my experiences and going to the TARMLS investors thing and the local tucson investor meeting most investors in tucson ARENT new, and are still investing because they got so much equity when the market jumped up, and now most investors from california are pulling out
Good luck tho! :D I would love to hear some success stories.. keep me posted!
-Scott

Well the no rent seems to sum up what I think you should do, although im in the same boat as far as I WANT TO OWN.. im 21.. no great cash built up.. no great income, and cant afford most stuff in tucson. Not to blow your boat but those areas of tucson wouldnt be consitered "prime" areas in my opnion. Prime areas would be N, NE, and some E.. nothing below 22nd.. I LOVE the new houses at Valencia/Alvernon.. but then there ARE A TON of complaints in that area.. its CLOSE to the MAJOR dump of tucson.. tons of complaints about smells and they burn stuff off from that dump.. its one of the CLOSEST areas to the dump, but the houses are brand new and NICE! ill agree. I looked there myself. Problem being, 5 years ago Lennar/US homes would of NEVER looked for land in that area, as prices started going up less desirable areas were being bought up to build houses, this area, the lot behind the jail down town, just because they could get the land for cheap. Just think about everything before pulling the trigger. I feel schools make a huge effect on the price of houses, those houses your looking at arent in the best school areas, and may hurt resale alittle. and I wanna confirm the Lennar your talking about it just south of valencia correct?! prices of new homes are going down because they're sitting. same thing with Rancho Sahuarita (parents live there) dont know if youve looked out there. i know one brand new house got discounted $140,000 before it finally sold. GEEZ! it was a bigger nicer house in Rancho but STILL.
There for awhile every time the builders in that area sold like 3 homes the prices went up, its not like that now. im not sure how big that subdivision is, it started out small, now phase 2 is huge. but AT THIS CURRENT market, phase 2 is nicer and cheaper than phase 1, so no one is going to buy an older house *altho just a year or two* around the corner when they can buy a new one for less. Going to hurt resale value until the area is completely sold out.
Also, if its not a spec house, there going to kill you at the design studio.. everything just looks so much nicer.. cost just a little more! and then boom you added $25,000 in upgrades but just got tile and a few things that dont even seem like up grades. who buys a new house with laminate in bathrooms/entry/kitchen. no one. but then again thats what comes with those houses unless you upgrade. just some thoughts..

Not to diss on anyone here but theres really no way they'd be able to tell you future market value. Im currently a member of the tucson MLS, no one would of EVER thought prices would double as they did, or everyone would of bought.. at the peak, no one would of bought if they knew it was going to fall.. Tucson is on a downfall.. although it has to stop sometime, theres no guarantee it'll raise a ton in 2 year.. hopefully.. yes.. possibly.. yes.. for sure.. no!
What area are we talking bout.. im gonna guess by the carport, yet the "desirable area" were talking ne or far east!?

Rick!
Welcome.. this place is awesome..
Scottsdale.. not a good area to invest in rentals.. lol
MOST Likely ill be moving up there beginning of the
year!
Your job, are you actually a Realtor then or not?

Very crappy luck with rental.. its still getting fixed up.. hopefully rented on the 1st..
Let me know when you have time to get together.. I should be able to about any day next week..
Just give me a call.. we can meet up for lunch..!
Numbers below~!

Welcome man! I just moved to Amarillo as well!
RYAN WEBBER is your man for local stuff.. im sure he'll pop in this post here shortly.. :)
Im doing lunch with him tomorrow ! :D
Welcome man! Give me a call sometime we'll meet up.. dont got anything planned tomorrow or the next day except lunch with ryan tomorrow!
phone numbers at the bottom.. its long distance but im local

:beer: Welcome man!

well it was mentioned to my realtor by his realtor thats the reasioning there not interested in financing me.

Can you further explain the lease option and sub 2's, cant find much details on them. not sure what EXACTLY they are and how i go about obtaining them!?