New investors in phoenix area

5 Replies

Hey guys, how is everyone doing? Setting my goal to 4 units in 2018. Either 4 homes or at least a 4-plex or a mixture. I have about 100k cash. I’m not sure if this is doable or not but I feel like if others can do it. Any advice for a newbie? Any recommendation on lenders, agent, and whoever else that could help? Thanks
Originally posted by @Sam Sopheak :
Hey guys, how is everyone doing?

Setting my goal to 4 units in 2018. Either 4 homes or at least a 4-plex or a mixture.

I have about 100k cash.

I’m not sure if this is doable or not but I feel like if others can do it.

Any advice for a newbie?

Any recommendation on lenders, agent, and whoever else that could help?

Thanks

Sure, you can get that accomplished in the Phoenix market. You'd be looking at creative financing to get it done. I do a similar setup. In my case however, one of us puts up the capital and the other finds the property and resells to a tenant buyer. We really don't do any rehabbing anymore. We let the tenant buyer do the rehab. Generally we get $25k down from a tenant buyer and split that 50/50. Since we take over the properties using Subject To and Wraps, there is also monthly cash flow of roughly $500 which we split 50/50 upon selling on Lease/Option to tenant buyers. We provide the tenant buyers with owner financing so they don't have to worry about bank financing. When the tenant buyer exercises the Option to buy a few years later, generally that has bought down our underlying financing and we split those profits 50/50 as well. Whichever of us provides the management side of the transaction has 51% ownership so decisions can be made. Everything is done inside an LLC. Very profitable for all involved. It's just another way to have partners and keep everyone happy. This technique applies to both "Buy & Hold" & to "Quick Flips".

Originally posted by @Sam Sopheak :
Hey guys, how is everyone doing?

Setting my goal to 4 units in 2018. Either 4 homes or at least a 4-plex or a mixture.

I have about 100k cash.

I’m not sure if this is doable or not but I feel like if others can do it.

Any advice for a newbie?

Any recommendation on lenders, agent, and whoever else that could help?

Thanks

 Hello and welcome! Best of luck to you!

@Sam Sopheak that's a good chunk of cash to work with in the greater Phoenix markets.  I'd go with a 4 plex  for consistent/predictable cash-flow and ease of management (compared to 4 SFHs spread out). 

I specialize in helping new investors buy smart income property (multi-family, single family, condos - whatever fits your goals) across the Valley of the Sun. I can refer you to a good lender a well. 

Feel free to message me if you'd like to chat further. 

Originally posted by @Ryan Swan :

@Sam Sopheak that's a good chunk of cash to work with in the greater Phoenix markets.  I'd go with a 4 plex  for consistent/predictable cash-flow and ease of management (compared to 4 SFHs spread out). 

I specialize in helping new investors buy smart income property (multi-family, single family, condos - whatever fits your goals) across the Valley of the Sun. I can refer you to a good lender a well. 

Feel free to message me if you'd like to chat further. 

 Ryan I sent you a message as I will be looking to House Hack a small multi around the end of this summer.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here