I often work with people who are looking at their real estate as an investment rather than a home.
Looking for multi-family properties where the numbers made sense last year was a challenge, to say the least. With interest rates hovering in the mid-7% range for investment properties, crunching the numbers just didn't work with the prices sellers were asking, for the most part. Cap rates in the 5's and 6's were predominant - and they just didn't cash flow.
Now, after the price drops, we're seeing a lot more properties with cap rates in the 8's - some even in the 10's. Combine that with the fact that interest rates for investment properties are in the 6% range, and investing in multi-family housing is looking more & more attractive in the Tucson real estate market.
There are currently at least 30 duplexes, triplexes, fourplexes and apartment buildings (that aren't short sales) on the market in Tucson with a cap rate of 8 or higher. Some folks are holding out for 10, but when is that going to happen? When interest rates are a full percentage point higher or more?
Investing in real estate is all about cash flow, value and timing. Why hold out for a small gain in cap rate if you are paying more for your money? For the large or institutional investor, that may make sense with short-term gains. For the smaller investor who plans to hold the property for a long time, a property that pays its own way, and a mortgage at a lower interest rate can be more practical.
Below is a direct link to my property search for Multi-Family Properties in the Tucson area - see if anything looks interesting to you.
Even in areas where University of Arizona students live, there are a few opportunities that might be tasty!
Passages of Tucson is making steady progress. Locally, some folks refer to the project in the SE area of the Tucson Metro - known as Vail, Arizona, as Tucson's "Mall of America" which really isn't far off of the mark, since one of the principals, Bob Hoffman, was an instrumental part of the team that made the Minnesota landmark happen.
With a project of this magnitude (the largest open-air multi-use complex in North America - 350 acres), progress can seem halted to the naked eye when agreements are being put into place and negotiations over infrastructure & governmental entities coordinated with financing requirements to have everything together enough to start moving dirt - this is just about ready to go.
One of the biggest hurdles has been getting the vast sewer line system approved, and that looks to be in place, according to trusted sources. Once a few more small loose ends are tied up, we'll see some action on the site.
So far, interest has been very high from companies interested in the hospital & other medical facilities, the 3 hotels to be built on the site (budget, mid-level & resort style), office space and retail - with letters of intent already in hand.
A few weeks ago, someone asked me for an update on the project, but I wanted to be sure my information was reasonably accurate...hence the delay in putting this together.
Check out their website!
Have you been thinking about a Green Home?
What goes into a "Green" house? Who determines what "Green" is, and how green is it?
Are they expensive? What can I do to make my existing home more energy efficient?
Where do I start?
If you live in Pima County Arizona (home to Tucson, Vail, Oro Valley, Marana, Sahuarita, Green Valley & many other communities), good resources are available through the county!
Rich Franz-Under is the Pima County Green Building Program Manager - and he is very helpful as well as knowledgeable about ways to improve your home (new or existing). This past Monday, Rich gave a presentation at the Tucson Association of REALTORS building that was very informative.
I asked him if it would be allright to have a copy of his PowerPoint to make available to the public - I converted it into video format for easier implementation into my blog, but if you would like the original PPT, just send me an email & I'll be glad to send it to you!
In addition to being a resource for the Tucson Metro, under his tutelage, Pima County has become the LEED Provider for all of Arizona, New Mexico & Southern California. If you're thinking LEED in the Southwest - you're going to be visiting Tucson - so look me up!
Check out Rich's webpage at PimaXpress - he is constantly updating it and adding more resources for people to utilize.
One of the wonderful things about blogging is the opportunities that come out of nowhere to meet people from all over the world, from all walks of life...for reasons you never dreamed of!
Because of a post I wrote in January about the new learning center at Tucson's Reid Park Zoo, a professor of Urban Engineering at Osaka City University contacted me. Dr. Masaki Nakao was going to be in the United States at the end of September, and wanted to tour this building because of its LEED Platinum Certification.
Honored to help with such a request, I contacted the zoo, and was put in touch with Ruston (Rusty) Agte, the Director of Education for Reid Park Zoo. He probably knows this building better than anyone else except for the architect in charge of the project.
Dr. Nakao, his wife & his assistant, Dr. Minako Nabeshima were very enjoyable people - and I hope to visit them when I visit Japan someday.
Sure, those of us blogging on ActiveRain do it to help our business - but there's also the benefit of connecting with people for reasons outside of business cannot be discounted...plus you might just get to do something nifty like pet rhinos too!
Here's a link to see how much energy the building gets from its solar panels: SunnyPortal To see all of the photos I shot that day, check out the web album on Picasa.
If you're visiting Tucson - I can't guarantee you that we'll get to do something like this, but I do love showing off our beloved "Old Pueblo."
Do you have good credit, but just can't come up with the 3.5% down payment that FHA loans require?
Can't use a USDA Rural loan because you don't want to live out in the areas that qualify for that program?
In Arizona there's a solution that just might work for you: Arizona Home Buyer Solutions Gift Program.
Seems like every time I turn around, somebody's telling me about a new program that's going to help people buy a good home...but there always seems to be a catch that makes the program unworkable for most people (or most properties).
The other day I was on my way to go across town for something or other, and a lady outside the title company below my office asked me "are you interested in learning about a program that would allow buyers to get a home for 1% down?"
My initial reaction was: "Yeah, right...yet another hype-filled program full of smoke & mirrors that saddles the borrower with interest rates w-a-a-y over market, an ungodly long-term 'foregiveness period,' or has property type restrictions that make it nearly impossible to find a house that fits the criteria (and when you do, 10 other people are offering on it too)."
Thankfully, my mouth didn't speak what was going through my head, and I accepted the flyer she gave me about the Arizona Home Buyer Solutions Gift Program. About a week later, she gave me a call and asked if she could tell me more about it and discuss specific details with the program - "Its worth a listen," my brain told me.
Glad I did. This is the real McCoy - simple & straightforward, run through Family Housing Resources & HUD approved.
Here's the skinny:
*620 FICO qualifies for 2% gift - so you'd have to put 1.5% down. 640 & above qualifies for 2.5% Gift
**Can combine with other programs, or family member gifts to help with the rest of the down payment.
For more information - call or email me. I'll be glad to put you in touch with someone involved with this program! 520.444.6471 or Kent@TucsonKent.com
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Real Answers-not "Mumbo Jumbo." Native to the Southwest, my career has revolved around exceeding client expectations in a variety of fields. This region is my home, my passion, my heritage.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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