Seller financing on 6 unit apartment in PHX East Valley

[Johnny McKeon]

Hey 👋  guys,

I'm currently under contract on a 6-unit apartment building in the East Valley of the Phoenix MSA and the seller's are willing to carry the debt with 18% down at 6% interest only for 12 months. This is a value-add play. I'm buying this building for the potential of what it can do in the future after I Implement my business plan and by maximizing the NOI thereby increasing the value of this asset and then going back to the bank to refinance to harvest out the equity that I put into it.

This is my first off-Market, seller-financed  deal and I would love to hear your stories or any wisdom or advice that you can pass along as I go through this process That  would not only benefit me but others contemplating to go the off market, seller financed route.

[Doug McVinua]

@Johnny McKeon Congratulations on the new investment, pretty exciting!

One thought on the remodels if you could get one unit vacant, remodel that one, and then move an existing tenant over to the remodeled unit, repeat the process until you are done.

I have done that before and it's worked out well for everyone, the tenant gets a fresh place to live and the disruption is minimal. The rents really should increase at that point as you are delivering a better unit for them to live in. I agree to be sensitive to the situation with the long term tenants but also don't forget this is an investment.

I manage a number of doors in Apache Junction and have good luck with them overall, the demand is always high and rents continue to climb.