It's a Good Time to Invest in Tucson

Inman News ranks Tucson as the fourth best place in the country to buy investment property now.

"The analysis considered markets with high affordability, low and dropping prices, a high market share of foreclosure sales, high population growth, an improving unemployment rate that is close to or better than the national average, high projected return on investment (ROI) over the next decade, and a low total cost of ownership-to-rent ratio."

While Tucson is great for long-term investors, the short term investors are also doing well by paying cash for foreclosed and distressed properties that don't qualify for traditional mortgage financing. The investors make the needed repairs, which may be as minor as replacing broken windows or replacing heating and cooling systems, and then selling the property for twice or more what they paid.

Not all these investors are actually paying cash. They may purchase the house with "hard money", meaning they get a loan at high interest rate from a private lender who, unlike the traditional sources of low cost mortgages, doesn't care about the condition of the property. The investor doesn't plan to keep the house more than a few months, so he isn't very concerned about the high interest rate he is paying.