We are all certainly aware of the drop in value of our homes. And while our residential property values have fallen so too have the prices of residential income properties.
The numbers for landlords are improving. While rents have come down and vacancies are rising, the purchase price of rental units has fallen more. Owners today are getting returns around 7.5 percent. An improvement from a couple of years ago. But being a landord is not for everyone. First, getting financing is difficult, don’t be surprised if a lender requires 50 percent down. Also, you need to think long term before you sell.
You can read a February 20 article about income property investments by M.P. McQueen in the
Wall Street Journal here.
There are 8 residential income properties on Tucson MLS for Cochise County. These listings range from a mobile home in Willcox priced at $29,991 to a 5 unit assisted living facility on 7 acres in Sierra Vista for $2,495,000. For more info call Jim Allen at 800-788-4885.
Don Grafues
Resource: The Wall Street Journal & REALTOR.org
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To discourage the “flipping” of properties, the FHA had a policy of not offering FHA backed financing if the purchase was within 90 days of the prior sale.
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This article from Money closes with a comment about investor activity being rather high. We have not seen much investor activity yet in spite of some of the bargins we have with HUD homes. Our buyers have been families planning to live in their purchased home, many of them first time buyers capitalizing on the tax credit. Regardless, this is good advice if you are thinking of buying for investment.
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