Sunbelt Boom

@sfr_sammy

Equity 40·Posted 1w ago

I'm watching the regional market shift in the Sunbelt, whhere population growth and migration are driving up demand for housing. A recent BRRRR close in Tucsson caugght my attention: a $250k purchase, $75k rehab, and a refi appraisal of $375k. The buyer investor left $50k in capital, a high-risk, high-reward play. With rental yielsd exceeding 8%, this deal showcases the potential for high returns in the desert southwest. Ahead of the curve, I'm monitoring market statistiics, which indicate a 10% YoY increase in home prices. As the Sunbelt continues to attract new residents, I anticipate a surge in investment opportunities, making it an exciting time for real estate investors like myself.

1 comment

@flipped_out·1w ago

While the numbers on this Tucsson BRRRR deal look promising, with a purchase price of $250k, $75k rehab, and a refi appraisaal of $375k, I'd like to dig deeper into the financials. What were the vacancy assumptions for this property, and how did the buyer investor plan to handle potental vacancies? Additionally, has a CAM reconciliation been performed to account for any common area maintenance costs that could impact cash flow? Furthermore, what's the credit profile of the tenants, and how will that affect the overall risk assessment of the investment? With rental yields exceeding 8%, it's crucial to consider these factors to ensure the investment is as solid as it seems. Given the 10% YoY increase in home prics, I'm also curious about the potential for appreciation, but it's essential to separate that from the cash flow potential.

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