SWDesertHomes in Tucson, Marana, Oro Valley, Vail & More!: "Flipping" Homes in Tucson, AZ - Are you a Project Person?

"Flipping" Homes in Tucson, AZ - Are you a Project Person?

"Flipping" Homes in Tucson, AZ - Are you a Project Person?

Friday morning I met my clients on the East side of Tucson at 9:30 a.m. to get a good start on property hunting before it got too hot.  It was already 98 degrees!

Home with repair needed

My clients are investors and this is their third transaction with me - they are buying modestly-priced fixer-uppers, working with their trusted contractor to repair and remodel, and then three months later they put the home on the market.

It's an exciting process from both sides.  I happened to find the buyer for the last home, and the house was exactly what she was looking for, at exactly the price she hoped for.

In this particular market, it is possible for investors to "flip" properties if they are willing to accept a very modest gain.  The creative process is fun, and then there's that little adrenaline rush when you know you've purchased the best "project" you can that balances cost versus return.  And yes, none of us read crystal balls - a buyer works with an agent that analyzes the neighborhood data, comparables, and trends to work with you in making the most informed decision. There is a risk.

Friday, after looking at 6 properties, my clients became intrigued with the last two on the list. Both were HUD homes.  

Because I started working with investors last year, one of the first things I did was take the classes, sign up to become a registered HUD buyer's agent, and start watching the market for HUD listings.  

HUD homes are interesting for a couple of reasons.  

First of all, if you want an inspection, you do it BEFORE you make a bid.  In this case, my clients called their contractor over and he looked through the home with us immediately.  

Second, HUD WILL pay up to 3% in closing costs.  Just keep in mind that they subtract that from their net - and it does affect their bottom line!

Third, remember that they are appraised before they go on the market, and if the property is within three months, that price is pretty firm!

For more information on HUD homes in Tucson, AZ, please feel free to contact me.  Currently, our bid is in and we are watching the status online.    

Scaffolding and Dan

If you'd like more information on HUD homes in Tucson, AZ, you can read my other HUD blog post HERE - or search HUD HOMES FOR SALE IN TUCSON, AZ right here!

Whether you're an investor or simply interested in obtaining a fantastically-priced home that might need some work, HUD homes can be a great opportunity. Let's start a project!!

If I can assist you in your home buying or selling in Marana, Tucson, Oro Valley, or Vail, please don't hesitate to call me!  Email at swdeserthomes@aol.com

Cara Marcelle Mancuso, Long Realty,

 (520)909-2988   

Regarding the material posted in my blog postings, these are my personal opinions and not those of Long Realty Company. 

All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified.

Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.

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9 commentsCara Marcelle Mancuso • June 27 2011 11:55AM

Comments

For many buyers, the reality is sinking in about "them" buying a home to "fix up"  It ain't for the faint of heart.  Buying a property that has been rehabbed is a good way to go IMHO.  Done right, it's move-in ready and worth it!

Posted by Carla Muss-Jacobs, Principal Broker/Owner, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) over 3 years ago

It is amazing how many completely remodeled homes are out there for under $80K in Tucson, Az.  Great opportunites for less-than-rent montly payments!  Have a great week, Carla!

Posted by Cara Marcelle Mancuso, Call a Marana neighbor, I'm THERE! (Long Realty - Dove Mountain, Marana AZ) over 3 years ago

Cara - good luck with your deals in the heat. You seem to have team work down very well with deals that work.

Posted by Larry O'Sullivan, We get homes sold (Rocky Mountain Realty, Sandy, UT) over 3 years ago

Cara: ...but it's a DRY heat, right? :-)

I love these homes and am always impressed by the potential people see in them. As much as I like working with investors, I get the biggest charge out of seeing a property that is a drag on a neighborhood become one of the best properties in the neighborhood when an investor buys it and rehabs it.

Not only a good way to make money, also a great way to make an impact in the community.

Great post!

Posted by Julissa Jumper, Fayetteville, NC Real Estate (Keller Williams Realty) over 3 years ago

If you find the right person who has the money and doesn't mind the work - it's not a bad idea! These homes especially the older ones have so much potential!

Posted by Kristine Ginsberg, Morris County, NJ Stager (Morris County, NJ: Elite Staging and Redesign, LLC) over 3 years ago

Larry - I count my blessings daily.  I can't keep working if my deals don't work!

Julissa - Riiiiiight....like it makes a difference over 100.  Actually, it does - but it's all pretty uncomfortable! From makeup to sweat in 15 easy minutes... I really enjoy the investment process - kind of feel like we're bettering the neighborhood - and there are plenty of people doing it.  I'm glad that it still works in today's market.

I LOVE old homes - the character is really precious and unique, Kristine.  I especially like when a contractor is able to raise the ceilings and restore original characteristics.  "Some day....." I hope to do it myself.

Posted by Cara Marcelle Mancuso, Call a Marana neighbor, I'm THERE! (Long Realty - Dove Mountain, Marana AZ) over 3 years ago

I certainly agree that one must expect a modest gain in the near terms Cara. But if you annualize the ROI then 12-18% sounds pretty good to me compared with investment vehicles.

Posted by Doug Anderson, Doug Anderson's Bay Area Real Estate Views (Executive Brokers Real Estate Group) over 3 years ago

I admire people who work with investors.  You really have to know your market and have the stomach for it, because, as you say, you cannot predict the market.

Posted by Jane Peters, Connecting you to the L.A. real estate scene (Power Brokers Int'l) over 3 years ago

Doug - I believe that the modest return is realistic, and sometimes that even gets shaved some!  

Jane - No crystal ball here !  Study, study, study...and don't get greedy.

Posted by Cara Marcelle Mancuso, Call a Marana neighbor, I'm THERE! (Long Realty - Dove Mountain, Marana AZ) over 3 years ago

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