Dissect-a-Deal: Phoenix 8-unit multifamily

Phoenix, Arizona
Real Estate Deal Analysis & Advice
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Dissect-a-Deal: Phoenix 8-unit multifamily

Jeffrey DanielsBusiness Member
Real Estate Broker · Phoenix, AZ · Member since 2016 · 68 posts · 38 votes

This post is a game, intended for entertainment and educational purposes.

Using live property data and understanding that real decisions sometimes must be made quickly with uncertainty:

• Analyze the deal

• 👍vs👎

• Enjoy the discussion

I do not represent this property owner, and this is not my listing.

Investment Case Study:

3044-48 E Beck Ln, Phoenix, AZ 85032

1. Investment Synopsis

This 8-unit multifamily offering presents a stabilized, turnkey opportunity in the North Phoenix submarket, consisting of two adjacent four-plex buildings. The asset is distinguished by its 100% "townhouse-style" unit mix (all 2-bed/2-bath two-story units) featuring private backyards and in-unit laundry, amenities that strongly support tenant retention and command premium rents relative to standard apartments. With 100% current occupancy and a list cap rate of 6.2%, this property offers immediate cash flow with potential upside through professional management and utility bill-back implementation.

2. Property Overview

  • • Property Type: Multifamily (Two 2-story buildings) 

    • Year Built: 1987 

  • • Unit Count: 8 Units 

  • • Unit Mix: (8) 2-Bedroom / 2-Bathroom Townhomes 

  • • Building Size: Avg unit size ~1,000 SqFt 

  • • Lot Size: 18,916 SqFt (approx. 0.43 acres) 

  • • Zoning: R3 (Multifamily Residential) 

  • • Parking: 10 Total Spaces (10 Covered) 

  • • APN: Includes parcels 214-37-027-C and 214-37-027-D 

3. Financial Summary

  • • List Price: $1,800,000 

  • • Price Per Unit: $225,000 ($1,800,000 / 8 units)

  • • Projected Cap Rate: 6.2% 

  • • Net Operating Income (NOI): $111,592 

  • • Gross Annual Income: ~$129,150 

  • • Total Reported Expenses: $20,637.99 

    • • Property Taxes (2025): $3,082 

    • • Water/Sewer: $10,688.16 

    • • Insurance: $2,957.72 

    • • Landscaping: $3,000 

    • • Common Electric: $910.11

[email protected]602-975-3566
Jeffrey Daniels, REALTOR® - Century 21 Arizona Foothills519 Reviews
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Most Popular Reply

Allan C.
Rental Property Investor · Member since 2018 · 826 posts · 810 votes
8mo

This is two x 4-units so not a commercial deal - you can acquire this on two residential loans. This matters because loan terms and insurance will be significantly favorable. 

taxes seem low so perhaps you only grabbed taxes for one building. Cap rate also seems high - expense ratio is very low (not accounting for amortized capex and other factors). What's appealing about this property is 1987 build, which is 30 yrs younger then most of Phoenix stock on the market. Electrical and sewers likely in decent condition. 

that being said, I'd like to pay less than $200k/unit if I'm this far north. Or in general get further south. 

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    8mo

    @Jeffrey Daniels Preface; as a novice to commercial RE shouldn't the goal be to find/buy/create an opportunity to fix up "un-stabilized" assets? You increase rents, improve the occupancy, increase the NOI, and thus add way more value than what you purchased it for? In a perfect world you could refinance into a lower rate/better terms, and then live on a beach drinking mai tai's?

    "this property offers immediate cash flow with potential upside through professional management and utility bill-back implementation." - PM seem to be on point if it's 100% occupied, right? So realistically how much does RUBS reduce operational costs? 

    Unless the immediate CF is amazing buying a turn-key 8-plex (that arguably needs nothing) doesn't make any sense to me. It's a hedge against inflation. It's a $1.8M cash "storage" strategy. Do people just own these for 30 years and let the market do the lifting? That's all I see from our experience with BRRRR and distressed SFH.

    1Reply
  • Jeffrey DanielsBusiness Member
    OP
    Real Estate Broker · Phoenix, AZ · Member since 2016 · 68 posts · 38 votes
    8mo

    @Jaron Walling I’m also new to the commercial space, so it’s encouraging to see that didn’t stop you from replying.

    Before posting, I debated removing that sentence. The intention was to present the case objectively and discuss both the pros and cons with those playing along.

    I have opinions based on details I noticed, but I’m more interested in hearing what decisions others make when approaching a fresh deal.

    There may be those among us whose goal in real estate is to park cash safely. Seems like a comfortable position for an investor, and it would definitely impact the level of risk one is willing to tolerate when analyzing a deal.

    [email protected]602-975-3566
    Jeffrey Daniels, REALTOR® - Century 21 Arizona Foothills519 Reviews
    WebsiteView Page
    1Reply
  • Allan C.
    Rental Property Investor · Member since 2018 · 826 posts · 810 votes
    8mo

    This is two x 4-units so not a commercial deal - you can acquire this on two residential loans. This matters because loan terms and insurance will be significantly favorable. 

    taxes seem low so perhaps you only grabbed taxes for one building. Cap rate also seems high - expense ratio is very low (not accounting for amortized capex and other factors). What's appealing about this property is 1987 build, which is 30 yrs younger then most of Phoenix stock on the market. Electrical and sewers likely in decent condition. 

    that being said, I'd like to pay less than $200k/unit if I'm this far north. Or in general get further south. 

    3Reply
  • Jeffrey DanielsBusiness Member
    OP
    Real Estate Broker · Phoenix, AZ · Member since 2016 · 68 posts · 38 votes
    8mo

    @Allan C., that's a good point on the financing. The owner also has each of these listed individually. I think there is value in keeping them together.

    Taxes may seem low, because, Arizona. Just checked, and each parcel shows $1560 in 2025. For the scenario, though, I just copy/paste the data provided in the listing. The original listing said 6.2 CAP, so that is their math, not mine, and getting into the numbers is part of the discussion.

    This is an interesting area which locals refer to by a nickname. But, if looking South, especially Southeast, we're also looking at higher prices and different scenarios.

    Your $200k/unit guideline is likely based on condition, and while the photos show a remodeled unit, I saw in their comments: "2 out of 8 units fully remodeled in 2025." So yeah, even if those two units bring a premium, still have the other 6, and you're saying no deal without at least a 10% discount. We're just rapping here, so thanks for playing along!

    [email protected]602-975-3566
    Jeffrey Daniels, REALTOR® - Century 21 Arizona Foothills519 Reviews
    WebsiteView Page
    0Reply
    • Allan C.
      Rental Property Investor · Member since 2018 · 826 posts · 810 votes
      8mo

      agreed that you should keep the properties together, but you can still get two residential loans. And of course listing agent has 6 cap, they all inflate caps by 1-1.5%.

      I verified the taxes and am surprised. I didn't realize there was a large spread across Phx.  I have a duplex in central Phx with higher tax than this 4-unit.

      expense ratio should be closer to ~35%.  Avg rent of $1350 for 1000 sqft isn't great and not worth $225k/unit in this market. 

      what is your take on absorption rate over next 18 months? Buyers should have more buying power in this softening market. 

      1Reply
  • Tim W.
    Member since 2024 · 65 posts · 62 votes
    8mo

    Rentometer has median rent in this area of $1300 for a 2 bd. Doubt this will come close to CF. Also, multi's in C class area (which this high level looks like to me) is definitely closer to 45-50%, rather than 20%. 

    not a deal I'd consider.  

    1Reply
  • Jeffrey DanielsBusiness Member
    OP
    Real Estate Broker · Phoenix, AZ · Member since 2016 · 68 posts · 38 votes
    8mo

    @Allan C. IMHO, there has always been a strong demand for 2-3-4 multifamily in Phoenix, and it just continues to grow. Even poor condition in class c neighborhoods, the retail prices make ROI daunting. So like @Jaron Walling mentioned, maybe these are just places to park cash?

    Still, I believe BiggerPockets coined the term "house hack", and now I'm meeting people all the time aiming to start portfolios with this strategy. Maybe it's just the people I meet! Still, these properties offer more private and sophisticated living than having roommates. I’ve seen a few builders working on infill multi projects and am personally looking for opportunities in the new overlay zones, but I expect the market for these asset types to remain strong.

    If talking SFH, and ignoring potential chaos with interest rates, I think we may have hit bottom already. The bulk of our Phoenix market volume is under $600,000, and since 2022 we've reached a point where over 60% of those Sellers are giving buyers ~$10k to do a deal. So if sale prices continue to steady and creep, which we've seen since Q3 2025, those concessions will shrink too. While prices may look soft for a while longer, buyers may be putting in more cash to close the same deals.

    Overall, I think social media is leading more people to seek tea leaves, believing they will time the market perfectly, even as great deals are happening every day. Part of the reason I decided to start this post!

    [email protected]602-975-3566
    Jeffrey Daniels, REALTOR® - Century 21 Arizona Foothills519 Reviews
    WebsiteView Page
    1Reply
  • Josh YoungPro Member
    Rental Property Investor / REALTOR® / Property Manager · Gilbert, AZ · Member since 2023 · 384 posts · 421 votes
    8mo

    @Jeffrey Daniels

    This looks like a pretty average listing. They didn’t include vacancy, property management, or maintenance/repairs on the pro-forma. Rents have been soft, so I tend to be a little more conservative when underwriting and as others have mentioned prices have come down a little too, so other investors are doing the same thing. 
    If you factor in the missing info on the pro-forma it doubles the operating expenses and you get pretty close to $200k per door at on a 5.5% cap. As others have mentioned, being built in the 80’s and qualifying for two residential loans are big pluses, so this could be a good opportunity for an investor, but the sales price would likely need to be below list for it to make sense, which isn’t unreasonable. It was just listed and the average sold price to original list price ratio in our market is about 92% on multi-family, so that makes more sense.

    [email protected]802-274-8121
    2Reply
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