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Old 08-30-2011, 06:30 PM
 
Location: Alberta, Canada
10 posts, read 29,814 times
Reputation: 11

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I am a Canadian investor (hence the name) who is planning on investing in the Arizona Real Estate market...hopefully in 2012.

I have been looking at the Phoenix (& area) market and have heard nothing but negativity about the local rental market.

My question is, is the Tucson market any better, or is it worse? I know the entire country is in a difficult situation at the moment, but I am not sure if the impact is the same on all cities/areas.

Please enlighten me!

Thanks!
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Old 08-31-2011, 07:06 AM
 
Location: Oro Valley AZ.
1,024 posts, read 2,749,898 times
Reputation: 1196
Quote:
Originally Posted by CanadianInvestor View Post
I am a Canadian investor (hence the name) who is planning on investing in the Arizona Real Estate market...hopefully in 2012.

I have been looking at the Phoenix (& area) market and have heard nothing but negativity about the local rental market.

My question is, is the Tucson market any better, or is it worse? I know the entire country is in a difficult situation at the moment, but I am not sure if the impact is the same on all cities/areas.

Please enlighten me!

Thanks!
Not sure what you have been reading about a negative rental market in Phoenix so I can't really comment on that. But here it seems the nice rentals move fairly fast. All the short sale and foreclosure homeowners from the past few years are now renters. My sister recently put her rental on Craigs list, had a multitude of inquires the first weekend and had a lease signed the first weekend. Some renters I have dealt with are looking for multi year leases if they can get better deal on the lease rate.
Investors are buying homes cash and turning them into rentals. One investor I know of, (not my client unfortunately!), has bought 6 properties this year. All in popular family areas in NW Tucson, Continental Ranch, Gladden Farms. He looks for bank owned, puts in cash offers. Ideal price range is in the 125-150K range, then rents them for 1,000 to 1300 month range. Better return than his money is making in money market account!
Now, this is what this individual does professionaly, buys and manages his own investment properties. He looks at the present market conditions as a way to add to his inventory of properties in Tucson. I just wrote a contract last night for a bank owned property that just came on the market, buyers are going to move into this home (if we get it) and then rent their existing home.
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Old 10-30-2011, 06:24 PM
 
41 posts, read 79,486 times
Reputation: 53
Tucson is the place to be. Phoenix has a lot of bad press and most of it is real. Tucson is a better market and will be stronger in the long run.
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Old 10-30-2011, 06:39 PM
 
2,879 posts, read 7,783,730 times
Reputation: 1184
TUSD is horrible....otherwise Tucson has a more likeable style (and less hot Summers)....I've lived in both, and there are plenty of bad areas in both.

Way easier to get cheap flights out of PHX than TUS.

Rental market is quite strong in Phoenix at the moment.
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