Foreclosures, short sales, HUD homes, and seller carrybacks

This is a Buyer’s market in Tucson and homes near the U of A bring in between $400 and $500 per month per bedroom. If you want to invest but are nervous about it, the U of A area is a captive market. The only living quarters through the university itself for students are small, cramped quarters and all students eventually expand into 2, 3, 4 or 5 person groups in condos or single family homes with backyards.  A typical 3 bedroom, 2 bath home rents to students for between $1200 and $1500 per month, especially if biking distance. We know all the preferred areas of student living.

More often than not parents take responsibility for the rent and lease. Security is taken up front in case of damage. We know a number of rental management companies that handle student rentals if you are not local and don’t want to bring in the students yourself. Management companies typically take 10% per month.  So, do the math and you will see that even in this market, depending upon how much you can put down, when the mortgage is lower than the rent you receive monthly you have cash flow and can calmly wait for the equity to increase.  There are 3 bedrooms in good condition near the U of A starting at $100,000.

Contact us to find out more about University investment properties. And to learn more about financing, proceed to our Tucson Mortgage page.

This entry was posted on Monday, April 20th, 2009 at 3:43 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.