Real Estate Investors?

Anyone here invest in real estate?

 

I'm a lightweight real estate investor. My wife and I have 2 homes in Tucson.
House #1: purchased as a foreclosure, 4/2.5 1,535 sqft cookie cutter type neighborhood. Only work it needed was a shower valve and a fridge. We upgraded a lot of stuff, lights, blinds, new roof (insurance), paint... the usual. Last renters move out recently and we're going to get it back on the market soon.
House #2: purchased as a short sale, 3/2 1566 sqft, 1955 red brick ranch, .23 acre, quiet neighborhood, great location. We live here right now. We ended up paying ~52% of the 2007 sale price, was in the same family for 60 years.

 

Been doing it for a while.

I have commercial (two gas stations)
Commercial with medical offices
2 town homes
1 strip mall with larger grocery chain anchor tenant
3 single family homes
1 18 unit apartment building


Are you looking for info or advice specifically?

 

I work in real estate. Don't invest yet since I don't have the capital.

 

nope, no advice needed at this point. Perhaps I will though when I start looking into buying my own 18 unit building!!

I am more a flip guy at this point. I'm 32 years old and just started flipping for profit, but have been around construction all my life. we built or remodeled every house I've lived in. Anyway, first flip numbers below:
This was a 3/1 960sf that I made a 2/1
purchase 55,000, all cash no financing
rehab 90,000 all cash no financing.
I did MOST of the work myself, except for masonry, flooring, sheetrock, paint, and HVAC. I'll get a dropbox link to pictures if anyone cares. Our original ARV was 190K. Luckily, the market got even better and we sold for 225K before I was finished. took me a year. This was my first flip for profit and managing on my own. I learned a shit ton on this one and will use it moving forward to our next one. By the way, I was doing the work on this house while working a full time job.

Our second house is scheduled to close this january 10th. numbers on this are:
3/1 1350sf, but will make it 3/1.5 ~1750sf with a finished basement
purchase 120K
rehab 85-95K
ARV 300-320K conservatively, but should hit 340K

 

The capital is the hard part. I got extremely lucky and the Air Force gave me a fat bonus for signing for 4 more years. Also living a modest lifestyle and spending a year in the Middle East helped.

 

Excellent
Congrats

You are on your way

My market is dominated with Koreans and Chinese so I compete with them when I can. When I can't I look outside but I try to keep it in this hot market as much as possible even though cost of entry is prohibitively high

 

have you heard of biggerpockets? look em up. great resource. but yeah I heard Cali is tough. Im in Philly and its pretty hot right now, but not at those high prices of entry!!

 

We're not at this point yet, the first one was $125k, we haven't put much into it, but after 2 years it's only worth $150k+ but the area is about to boom. Roads are being widened, commercial buildings are being planned... prices are expected to go up. The house was $200k in 2005 when it was new, but I doubt it's going back up there anytime soon, if ever. If we can just get renters to pay it down for a couple more years we'll be alright.
The other was $134k, sold in 2007 for $261. It needs more work but is already worth over $200k.
The Tucson market isn't much, but I'm trying to work with what I've got.

 

Yup I have.

Yup here 800k will get you 1200 sq feet on a good day

 

That's terrible... $90k gets you 1200 sq feet in Tucson.

 

Yeah I know the AZ market well
Lots of relatives

That said, % yield in AZ doesnt jive with my portfolio

 

Nope, Tucson is a terrible place to invest in real estate, but since the government told me I have to be here... I might as well make a few bucks.

 

https://www.dropbox.com/sh/g294m0cdu04wwh8/AADFWIoJs25G2LkzlC5LjsSLa?dl=0

there's the first one I did mostly all the work on. in philly we have rowhomes. typical widths are 12 feet to 16 feet wide with a house attached to yours on either side. This particular one didn't have a house on the right. It used to though.

here's the before for this ^^^^ house https://drive.google.com/open?id=0B9b2XgrCUKc-TFZKYXVhcnFKenc

@02YotaGuy can't you go little further north to Phoenix? I would think that's a better market.

 

I like Scottsdale but if I have to go up there it's at least 2 hours each way. It wouldn't be bad for long term rentals, but trying to do work myself would be a stretch. I'm also holding the real estate where it's at for now. My wife and I have an online business we're trying to get off the ground right now.

 

oh wow 2 hours. looks closer on google maps!! haha. i would like to get into holding rentals, but my partners right now just want me to flip with their money. I'm lucky enough to be using my parents money (with whatever profits I earn rolled into 'the next one')

 

I wish I had the time and skills to flip. That house in the album looks great, I still can't get used to the townhome/rowhome thing though. I'm a Texan so I'm used to open spaces. I wish I had bought in Honolulu, but I had absolutely no money and home are a little expensive there.

 

I have investments in REITs. Made some good gains the last few years. https://www.fool.com/knowledge-center/reit.aspx

 

What area of Tucson is that? I'm in the NE right now and love the area. I foresee myself staying with my job for a while, I think I can pull some good career growth and frankly I like Tucson. You're right though, from what I can tell flipping houses was hot here about 3 years ago.

I've only been here 10 months straight out of school. GF and I plan to re-lease our rental in October for another year because the price for quality is great (we are in an old people community and the owner couldnt sell so he listed rental cheap and fast), and we don't have the capitol yet to buy. Another year will give a good indication of our job growth as well.

I've always planned to invest into rental properties but flipping may be in order, as well. I just liked the idea of rental property as a means another portion of retirement; Have someone else pay my mortagage and eventually liquidate when needed in retirement.

 

That house is out West near where Ajo and Valencia meet. I sold it in November, pulled about $25k out.

I'm going to be moving from Tucson to Virginia in a few months. My house will probably be sold in the divorce, hopefully I can renovate first otherwise someone will get a great deal and I'll lose a lot of money.