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Updated over 6 years ago on . Most recent reply

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10
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9
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Megan Alice
  • Los Angeles, CA
9
Votes |
10
Posts

First Multi Family - Phoenix - Help Analyzing Deal

Megan Alice
  • Los Angeles, CA
Posted

Hi everyone, I’m looking at a 4 plex in Phoenix (Sunnyslope area, C neighborhood) and wanted to know if you would make this deal:

$300k purchase price, 25% down. All 4 units completely remodeled, new roof, new plumbing, new electric, new windows. Three 2 bed/1 bath, one 1 bed/1bath. Rents $795, $750, $725, $550, plus or minus. Cap rate 7% and cash flow approx $620/month. 

Would you do that deal?

Thank you!

Most Popular Reply

User Stats

10
Posts
9
Votes
Megan Alice
  • Los Angeles, CA
9
Votes |
10
Posts
Megan Alice
  • Los Angeles, CA
Replied

I’m buying the property vacant as they just completed the renovations. I’ve found a property manager and he has told me realistic rents for the area. Yes, remodel done by licensed contractor. Yes, visited property last weekend both day and night. It’s not a place I’d live, but that’s not really the question. My expenses:

P&I: 1260

Insurance: 150

Taxes: 58 (yes, it’s that low!)

Property manager: 10% rents

WST: 250

Maintenance: 200

= approx 2,200 monthly expenses.

Rents: 2,820

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