Home Buying in 87121>Question Details

Kathleen, Home Buyer in 87121

I'd like to buy an investment property in Albuquerque. Since I will probably be a distant landlord, tell me about good areas to buy in that will

Asked by Kathleen, 87121 Wed Dec 30, 2009

draw reliable renters and what kind of rental management companies are available to help me. Thanks, Kathleen

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The first area that comes to mind when thinking investment property is the UNM area, which would include the Ridge Crest area and Nob Hill. This area seems to always be in demand. Being close to the University of New Mexico usually ensures that the property will be occupied with a renter all most year long. Granted, different seasons will effect the vacancy rate. Often if the property is updated and the rent is more on the higher end, it can attract graduate students who a more likely to stay year round and can appreciate a quite area for studying purposes.

If possible, a single family, detached property would be ideal. Condos and town homes tend to appeal to a smaller pool of buyers. Whereas, with a single family home, when it comes time to unload the property, a detached home will appeal to more buyers. You will have all different types of people in different stages of life looking more seriously at a single family home.


http://real-estate.thealbuquerquerealestategroup.com/i/ridge…
1 vote Thank Flag Link Tue Jun 17, 2014
SINGLE FAMILY HOMES!!!!! Too many people by multifamily homes to rent out to avoid having the entire house vacant. While this may seem like a smart plan at first, single family homes attract more long term/reliable renters. With multifamily homes you increase your risk of vacancies and non-payments which would greatly increase your legal costs.

There are too many property manager companies out there to count. Find one that you feel comfortable having a long conversation with and walk away feeling good about what he/she had to say.
1 vote Thank Flag Link Tue Mar 11, 2014
I am looking to sell my home in Rio Rancho, NM 15 minutes from ABQ. I have great renters there already, and deal with them by phone.
River's edge III is within walking distance to Rio Grande and The Bosque (res for wildlife)
I am an RN and have lived in the home, and am the owner.
The house is 4br/2b with garaage, landscaped green, new cooler, remodeled kitchen
Asking 189K, rent is 1200/mo
Let me know if interested, I was just thinking of liquidizing, and saw your share
Susanne Bergstrom
0 votes Thank Flag Link Wed Jan 13, 2016
Agents need to avoid violating "anti-steering" laws.
0 votes Thank Flag Link Mon Oct 27, 2014
If you are going to be a distant landlord, I would make sure the property management is reliable enough to leave behind. I would make sure you have some way of seeing how the tenants are doing so you don't have to worry about them not being satisfied. I would also make sure that you stay in constant communication with the management company so you know what they are doing to make the place flow better and have a better atmosphere.

Zach | http://eastvalleypropertymanagement.com/company/about
0 votes Thank Flag Link Mon Oct 27, 2014
The areas that draw the most attention from the investment community are UNM and Downtown. These areas may also command the highest prices at acquisition and sale. Some investors believe NE heights properties hold their value best and offer better appreciation. An investor may want to identify specific goals before buying, i.e. cash flow, appreciation, risk, condition, management resources, down payment and financing availability. It makes sense to run a standard investment property worksheet on every property under consideration.
0 votes Thank Flag Link Mon Oct 20, 2014
Albuquerque has a strong rental market right now. Look around the best high schools, like La Cueva, Eldorado, Volcano Vista, Sandia. Renters near UNM may or may not take great care of the property, especially if they are college students, whereas attracting a family to a neighborhood with good schools is easier and rents are higher. Homes around the University tend to be older and require more upkeep, which might be a challenge for an absentee landlord.
0 votes Thank Flag Link Fri Oct 17, 2014
I purchased a property in Ventana Ranch as an investment and that has turned out well so far. I got a tenant in the first 2 weeks of putting it up for rent. Tyson properties is managing it for me as I do not live in New Mexico.
0 votes Thank Flag Link Wed Mar 5, 2014
I don't know if you have found a place yet...I would recommend neighborhoods that are family oriented. If you don't want students to rent because they may be unreliable, look at family oriented neighborhoods. Homes close to schools are ideal for families wanting to live close to the schools their children go to. I have a friend that works with rental management and would be happy to refer you to her.

Lovey Frazier
Web Reference: http://www.loveyfrazier.com
0 votes Thank Flag Link Fri Jan 15, 2010
I have a home in the Uptown/University area that I have been leasing since I moved to CA. This area is good and does retain its value; however, I would caution about renting to students unless they are graduate students. Usually two or three want to rent, but eventually bring in more friends to lower rent which basically is an indicator that they can't truly afford to be lliving in that area. They also tend to be a little more careless about maintaining the property. I am not indicating all are like this, but in the past eight years, I've had differtent student renters and regardless of what they promise, they are not as dependable as faculty or other professionals. I have a good property manager but good ones are hard to come by.
0 votes Thank Flag Link Wed Jan 13, 2010
Hi Kathleen,
I currently own 2 rental properties near the university and you can't go wrong there, but here is a little more detail on what I think is optimal, based on my own experience as an investor. You want to consider rentability, property value potential, and bang for your buck. I think the best option is to buy a 3BR/2Ba near UNM, but toward Uptown, because you can always rent to students if you'd like (which I do) or you can rent to many others since it is a super convenient central location with very nice areas - I currently have one unit rented to an Air Force serviceman. Home values in this area are great and will hold as well as anywhere, due to the location and the fact that Uptown will only increase as development eventually does finish (delayed by this economy). The UNM area has held value very well and I have outlined some general boundaries I use: http://budurl.com/ABQRentals
I think anywhere in this area can work well, but I tend to focus more on areas between UNM and Uptown, where you can get a little more for your dollar and still rent to students or military or families, and values are likely to be as strong as possible. I also tend to look for main houses with guest or in-law qtrs, which instantly improves your ROI, although there is some risk if the house is zoned R-1. I can email you more detail regarding a strong strategy that reduces risk and maximizes return along with some good example properties anytime, just let me know. Best of luck Kathleen, this is the time to buy!
Sincerely,
David
0 votes Thank Flag Link Wed Dec 30, 2009
Chris is right, there is no one perfect or better area to buy in Albuquerque & Rio Rancho when shopping for rentors than UNM and near Kirkland Airforce Base, but you may also want to consider purchasing a Short Sale Property. The Seller is trying to sell the property for less than the property is worth in most cases and trying to get the bank to forgive the rest of the money owed on the property. Short Sales for a lot of buyers are not really a good option because they can take a long time to close, but being that your an investor, you do and you have the time for the Real Estate market to appreciate before you decide to sell the property. Also you won't always get a property that has been torn appart by the current homeowner like you could with a foreclosure because alot of the banks are offering cash for keys programs to turn the properties over in good condition. You may also have immediate equity in the property depending on the reason the seller is selling. It is possible that they are relocating out of state and have to sell quickly in order to but a property in the state they are moving to because the bank will not allow them to carry to mortgages for example.
0 votes Thank Flag Link Wed Dec 30, 2009
Kathleen - well....having worked with investors that have purchased rental property all over town it's hard to narrow down "good" areas to buy. I think there are opportunities throughout Albuquerque and Rio Rancho. Much of that will have to do with your price point? And your goals on cash flow, income, and long term plan for the property?

The areas surrounding UNM and the university hospital attract students, faculty, doctors, etc. Involved in several rental properties in that area - the phenomenon of professionals moving into town for work who can't sell their homes where they are coming from and need to rent does exist. A pool of qualified renters is always a starting point for any property you decide on.

As for property management companies, there are many to choose from depending on your property location. You can expect to pay average of 10-12% for their services.

Talk to you soon and have a great day! Chris
0 votes Thank Flag Link Wed Dec 30, 2009
Hi,
I am interested in buying a house just for investment. Can you recommend any good properties.
jp13508@aol.com
Flag Tue Dec 31, 2013
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