All Forum Posts by: Tom Albares

Title should have been negotiation not negation. Thanks spell check.

We are closing on a 3 bedroom 2 bath condo here in Tucson. Had to pay full price for a turnkey fully furnished unit - $159,000, but it is rental ready. We had the inspection completed on Thursday and have to turn in our response (BINSR) by COB today. During the inspection, the AC was found to be running poorly (12 degree temperature from outside to inside) and the unit apparently ices up. Unable to see the outside unit as it is mounted on the roof. Exterior seals around 4 single pane windows were rotted out. The unit was built in 1986 so there is a chance polybutylene piping is behind the walls. One tub has a rust spot at the drain and needs to be reglazed. And the microwave was unplugged. Will not respond to keypad when plugged in and runs continuously. So my question is what to ask the seller for. The HVAC is obviously a concern and could be as simple as needing service or the worst, it could need replacement. The windows can be serviced for a cost. The tub can be repaired and reglazed for around $600. The microwave flat out needs replacement. I am submitting a list to my realtor today. Should I assign a dollar amount to each of the items and try to negotiate a credit? Any advice is appreciated.

Thank you all! John Underwood that is a great idea about donating the unit. Amber Elmer the complex has a five day minimum rental. Stone Jin we will hire out the cleaning once we find a good dependable person. Again thank you all for the good advice and help.

I grew up in Kansas City, MO near 47th and Troost, a really crappy area. But when I saw the address in your post, I was like WOW! That is a really bad and dangerous area. When my wife and I now visit KC, she says in areas like that, if the light turns red and somebody approaches, run the light. I'd look elsewhere if I were you. Raytown is a solid area for investment. Independence is another. Areas of south KC, not SE, are ok as well.

My wife and I just got our offer accepted on a turn key vacation rental in the Ventana Canyon area of Tucson. 1286 sq ft, 3 bedroom, 2 bath condo. Fully furnished including linens, dishes, pots, etc. We're going to list it on AirBnB and VRBO/Homeaway. I've run a AirDNA report to get all the pricing/vacancy analytics. Bookings (even the past owners) is solid November - April. But the heat of Tucson keeps some tourist away in summer. So I will look into advertising it as a corporate furnished rental during the off months to try to capture families relocating during the summer months. Lodgify looks like a good way to manage the listings and bookings, also provides a website builder. We have an umbrella policy already that I will extend since we have a long term rental in southwestern Colorado. We plan on managing it ourselves and cleaning it between tenants until we can get a developed procedure and checklist worked out, and find dependable help. So we will keep our recurring expenses down in the beginning. I'm thinking about going with some automation for security and guest entrance. Z-wave products seem to get the best reviews. Anyway, just excited and anxious to get going in the hospitality business. We hope it will be rewarding for us in many ways. Thanks for reading!

The condo was very complete. Well maintained. Came with everything. Linens, dishes, furniture. Totally turnkey. We requested rental history from the realtor. Scouring VRBO, Homeway, Flipkey has turned up pretty solid vacancy rates from Oct - Apr. the owner had left a book showing rentals from April - November of last year. 25 rentals with an average stay of about 4 days. We offered $155,000 and seller pays all closing. Fingers crossed. With a decent presence on booking sites and a good website, this could be interesting.

I understands he lack of rentals in the summer. No one wants to visit Tucson in the summer. Chris Walker , the unit is in building 1 on the ground floor. Going to see it this afternoon. Still running the numbers.

I'm looking for a buy and hold rental property here in the Tucson area.  But most of the SFHs that I find are either going to auction or have already been flipped.  And once they flip, none of the rules of thumb work anymore.  They will barely make money.

So instead, what if I looked for a turnkey condo in a golf area of Tucson as a vacation rental instead. A realtor I am working with has an unlisted 3 bedroom condo in Ventana Canyon (a nice section of town) that has been used a vacation rental. Fully turnkey, fully furnished, $159,000 is the asking price. Rents during high season are $3500/mo (Oct - May). The rest of the year, it can draw $1800 - $2300/mo. I think the risk is higher with HOA fees and a more expensive property, but the rents are far greater. There is also the obvious risk it sits empty.

I would appreciate your opinions.  Thanks,

I do agree with you about it being low.  I would like to keep the rehab low.  I don't know that the AC needs replacement yet.  The tub/shower combos I will do myself for around $800.  I already have a refrigerator, washer, and dryer in excellent shape from another home I owned.  The painting will run about $1800 hired out.  And for landscaping, all we are going to do is weed blocker and spreading pebbles - it's Arizona - no yard.  So the rehab numbers could be close.

My name is Tom and I am a new member from Tucson, AZ. 

My wife and I are currently in the process of trying to buy our second rental property here in Tucson.  About a year ago, we bought a small house (696 sq ft) in Cortez, CO for $62k cash.  Our original intent was to use it ourselves to escape the heat in summer, and possibly rent it out on websites like VRBO or AirBnB.  But the house came with a tenant who has lived there for over four years and always pays his rent.  So, we let him stay and collect $600/month rent (actually $540 after property management).  So far, so good, and the return on the money is better than that found in a bank.

So now we are looking at a 3 bedroom, 2 bath home built in 2001 in the Midvale Park section of Tucson.  It's a blue collar working class neighborhood, but has a lot of amenities nearby.  Owner is asking $135000 for a 1532 sq ft home.  A/C is iffy.  No refrigerator, washer, or dryer comes with the property (although there are fine hookups).  The two drop in shower/tub combos need replacement.  The interior needs paint.  The house is tile and carpet.  Tile is fine.  Carpet needs cleaning.  Backyard is block wall fenced (good) with nothing and I mean nothing in the yard.  Dirt and weeds.

So we're making on offer of $118000.  I think with $5000 - $7000 in repairs and landscaping, we could have a nice place to rent for around $1000/month.  Cash flow would be about $400 per month. 

So I just wanted to introduce myself, explain my situation, and ask for any advice you can give me.  Thanks!