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Updated over 8 years ago on . Most recent reply

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19
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Jeremy Santy
  • Koloa, HI
11
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19
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What do you think of this deal in Phoenix?

Jeremy Santy
  • Koloa, HI
Posted

Hi BP members! 

What do you think of this multifamily property? Is it a good deal or just an average deal? 

http://www.loopnet.com/Listing/19434737/1812-N-35t...

I'm new to multi family investing and want to avoid making any big mistakes if possible. :)

Most Popular Reply

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117
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50
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Brian Volland
  • Property Manager
  • Peoria, Az
50
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117
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Brian Volland
  • Property Manager
  • Peoria, Az
Replied

There is a massive amount of information that you'll want before moving on that property. With the market in Phoenix the way it is right now for multi-family, either the owner is severely distressed or the property is. I'm going to go ahead and guess the property just based on the area it's in just because that's typically a class D or E area. If you're looking for the often repeated "class 'C' property in a class 'A' area." then just walk away. Even if the numbers work out well, based on google maps street view and aerial photos, you're looking at a slum situation. Especially with the property being directly on a main road. 

I looked up the listing broker because she didn't sound familiar and there are no property listings on her website so you'd have to contact her directly to get the info you need. Basic stuff like, how many Br/ba? Avg rent? What numbers specifically were used to arrive at that Cap Rate (taxes, insurance, maint, vacancy, cap ex, etc)? It's listed on LoopNet as a 7-unit, so why are there only 5 doors? Why are there only 5 evap coolers? Why does my primary MLS site mention that those evap coolers aren't in use? Why is there only info on the MLS for 2 of the, I'm guessing 5, units?

Numbers, figures, formulas, and metrics are your friend; they never lie.

Last thoughts, if you're looking to buy low, fix it up, bump the rents up, and sell, maybe look in to it. If you're hoping for a low maintenance Buy and Hold with no hassle, run away.

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