Phoenix, AZ · Member since 2017 · 2 posts · 0 votes
Hello,
the seller is courting another buyer. A two building 4 plex that is completely just a dump. 2 bed and 1 bath units at 750 sq ft. Has lots of potential. Everything has been gutted my seller. Been sitting for 2 years. Needs roof sheathing, shingles, AC units, full kitchens and single bathroom rehabs. Needs all electric re work (gutted), complete flooring, full drywall, and exterior painting too. He wont negotiate on price. He
bought it for 25k in 2015. He wants 10k down , interest only for up to 60 months. Small town in Arizona. Less than 20,000 population.
Phoenix, AZ · Member since 2017 · 2 posts · 0 votes
9y
60k is conservative. 70k worst case perhaps... I forgot to mention all windows have been busted.. Interiors doors all smashed..
It's in small truck stop town. No industry, just farms..
Comps came in at 80 to 100k... For rural ghetto type decor comps... That's why I think it could have potential for above average rents.
Maybe 10% equity after rehab.. I am quitting my trucking job and doing this till finished then want to refi in to 30 year VA loan. I had a 4plex in the 90s.. Did all work myself back then. I was 24. This one is a real mess. But it could appreciate over the long term market. I think he is asking too much ..
Investor · Oklahoma City, OK · Member since 2017 · 33 posts · 20 votes
9y
Seems to me that it all depends on what the value (based on comps and a number of other factors ect) of the property will be after the rehab. If after rehab the property is worth $90k or will it be worth $200k is something you'll have to evaluate yourself to determine if the deal is worth it.
Investor · Casa Grande, AZ · Member since 2017 · 34 posts · 32 votes
9y
I've been curious about it as well. If it's the property I think it is, it'll definitely be interesting to see the end result.
@Giacomo Riccobono, your two-building fourplex wouldn't happen to be part of a larger complex on a split parcel, would it? If so, what's the plan for the other two buildings?