Welcome Josh! This happens to be exactly what I'm doing here in Phoenix. Would love to connect
Hello Josh and Dovid! My husband and I are also in Arizona but on the east side. We are looking to start investing in multifamily and are in the process of building our network, reading books, podcasts, and going to seminars (Sean Terry, David Lindahl, Michael Blank) to learn more. My husband has been a realtor for many years and has lots of connections in the RE business. However, multifamily is a whole different process so our challenge has been finding sponsors to finance deals.
Hey @Josh Oaten , welcome to the forum. What made you choose the Phoenix area for multifamily (compared to other areas in the US)?
@Dovid Staples have sent you a pm
Hey @Daniel Lehrman I am looking to move to the US and will be based in Phoenix, so I would like to get the ball rolling in my own backyard so to speak. In regards to research I have done, I have found Phoenix to be an investing market, there are a lot of areas that are showing strong rental growth such as Tempe, Mesa, Scottsdale and even Glendale and Peoria to the west. The Phoenix area is showing some awesome numbers in regards to job and population growth. My only concern being that there are limited growth boundaries set in place and a large pipeline of development that will keep supply high. Do you have any thoughts on the Phoenix market for commercial real estate? I’d love to hear some feedback from a local realtor.
@Josh Oaten very good points. There is a lot of positive migration into the Phoenix area but there is definitely pause for concern because there's virtually no growth boundaries. Downtown Phoenix has just been exploding recently with new luxury apartment complexes. I'll send you a colleague request and we can chat more about it
Hi Daniel, are you a commercial/MF agent or do you focus on SFH and condos in Phoenix?
Hi @Jared Carpenter ! I have not worked with MF or commercial, though that is the end goal as an investor. There doesn't seem to be as much MF opportunities in Phoenix compared to other places. However, my partner recently wholesaled a 6-unit and made $50K :O. I'm admittedly a newer agent, so I'm still trying to narrow my focus.
Hey Josh, Great to see you are wanting to invest here in Phoenix! I live here locally and have been investing in single family flips and rentals for about 2 years now and have been a licensed residential real estate agent for 7 years. I have seriously considered multifamily and I'm actively looking for either single family or a multifamily investment this year. However the biggest hurdle for me has been finding a cap rate I'm comfortable with. I have really high expectations but would like a 10%-12% cap rate. With the competitive market we have here it's been nearly impossible to find. I'm curious what kind of returns some of the other local investors have been getting?
I'm closing multi-family properties for buyers left and right - lots of opportunities from Phoenix all the way out through East Mesa. The investors are from all walks of life and experience levels. Some are out of state (lots of buyers from California), others are AZ residents just looking to diversity from traditional stocks/bonds, and I'm helping other buyers use low down payment programs to purchase a 2-4 family to live in one of the units as their primary residence.
Just got a nice off-market package of three fourplexes under contract for a BP client I've been working with for a while. There's opportunity out there both on and off market, you just need someone on your side who can help you find, analyze, and ultimately get the deals closed!
@Neil Patel price per unit is going to highly depend on the building, the type of units, the quality, and maybe most of all, the location of the property itself. Broad price per unit for a fourplex is about $85k to $110k.
CAP rates are being pushed down by the price increases, but the properties are still selling none the less. I think a lot of investors are drawn to real estate as a safer and less volatile place to park their money than other markets.
PM me your property details if you want me to give an opinion on their marketability.
Josh - West Phoenix is showing some of the strongest growth right now. I think Buckeye (way west) is having my best ROI.
Ironically, people never think of that area but Bill Gate's firm is investing just west of there in the city of the future. I think it must be the Cali people moving in hurds to Arizona are finding deals and want to be a bit closer to realities when they drive home.
I'm a California real estate attorney, broker, and investor looking for 5-200 unit, value add potential, multifamily properties in the Phoenix area. I have the team and capital partners, just need the property. Please let me know if you come across any such deals.
@Josh Oaten or @Ryan Swan or open to others input or even partnering on a viable plan. Recently purchased a 1/4 acre lot in north Phx that has a single fam house 🏡 on it that I’m fixing up - haven’t made my final decision on my end-game yet. I checked with the city and the lot can have 8 units. So, still trying to determine the right move. Sell, rent it or rent while figuring out how to develop the lot. Anyone been in this situation before with insights? Also, I am a realtor. Considered listing it with illustrations as well...up for insights. 🤷🏼♂️
@Josh Oaten Great post. I recently was part of (2) apartment syndications in Pheonix as a limited parter in the deals. These were value add C to B and we held them about 18 months and realized a 28% ROI on one and a 36% ROI on the other. The syndicate groups have since switched to focus on the Florida markets primarily. Best of luck!