All Forum Posts by: Dovid Staples

A group of 4 Triplexes in Phoenix AZ. All are adjacent to each other to form it's own little complex. All are cookie cutter identical opening up the possibility of turning into a group home, senior living, or just keep as rentals. Fencing around the apartments. Parking lot. Currently being repainted.

Cross Streets: Indian School/23rd Ave (North East)

Year Built: 1963

Unit mix: 12 2bed/1bath. Private patios, yards, storage rooms.

Unit Size: 900 sq ft

Lot size: 33,104/sqft 0.76/acre (total)

Tax: 954 (on each lot)

Rents: 650-695

Average rent in the area: 680

Average median rent in the area: 695

Per door price of this property: $78,333

Average per door sales in the area (3 month comparable [3 sales]): $92,650

Average per door sales in the area (6 month comparable [5 sales]): $106,090

Water: Master metered on each building (you could just install the RUB system)

Electric: individually metered

Terms: 940k. 75k down. Seller carries the balance on a 4 year balloon, 3% interest on a 30 year amortization schedule.

Please message me if interested

Hey Rodolfo! Have you joined AZREIA or PHXREIA? Great place to network and find someone in commercial RE!

Update: Thanks to BP's awesome property calculators, I've worked out a different offer: We us conventional financing with 25% down on one of the properties to buy it outright on the condition that the seller owner finance the other three on a 5% interest only loan on a 3 year balloon. Assuming 4.5% interest for the bank loan, the total cash on cash return on all four properties would come out to 19.24%

@JD Martin

1. The exit strategy after 3 years is to ideally refinance on it (or them), sell it, or negotiate with the seller. All three options seem viable at this point.

2. He bought them in 2006

3. I plan to set aside 30% for expenses (repairs, cap ex, management). Regarding that we would be working with his attorney to draw up an official agreement. It something for us to discuss.

Just to note; I meant four triplexes all in a group. Not three.

@Denny Robert I sent you a PM

@Gary Nakauchi 1963. I'm currently getting info on what's been renovated and or replaced on them.

Hello BP! I've finally found someone looking to sell their MF properties and owner finance them. Three triplexes in Phoenix AZ to be exact, but I'm only focusing on one. Each unit is a 2/1. Per research, he's selling for exactly what he paid for them; 235k. That puts me at 78k per door and $92/sq ft. That seems pretty good compared to the six month comparable sales of $99.8k/door and $132/sq ft in that immediate area. The average rent for a 2 bed is 680.

He's asking for ten percent down with 5-6 percent interest. The only terms I'd accept would be 5% on a three year balloon with a 30yr amortization.

I have a potential JV partner who's interested in real estate, but doesn't have the time. I'm thinking of offering him a 60/40 partnership (the 60 being his share).

I figured the numbers like this:

2,040 gross rent. tenants pay utilities.

minus 10% repairs, 10% cap ex, (it's an older property), 10% management, 7% vacany, $80 tax

= 1,613.2 net

minus debt service ($1,135)

= 478.2 net net

on a 60/40 deal he'd make 286.92/month, 3,443.04/yr, and 13.77% cash on cash return (assuming acquisition comes out to 25k total)

Is there anything here I'm missing? Anything I should be wary of or take into consideration?

Also, what creative method would you implement to acquire and keep one or two of the other properties (they are all equal?

Thank you BP!

PS. bear in mind I'm of course willing to take a smaller share for myself if the JV partner wasn't happy with his estimated return.

@Linda S. I wish there was a simple easy way I could tell you I figured out, but so far it's basically just combing through craigslist (after a while I've learned to tell which posts were just wholesalers and which were actual owners at a glance), consistent posting on facebook, calling off "for rent" signs, and a couple multi-family brokers I've bought lunch for (best investment yet!)

Also, more often than not, someone who owns a multi family property will at least know someone else who owns one too.

Buy and hold using owner-financing (single family and multi-family). The aging baby-boomer population brings easy to work with sellers with no mortgages on their properties.

Hello BP! I've finally found someone looking to sell their MF properties and owner finance them. Three triplexes in Phoenix AZ to be exact, but I'm only focusing on one. Each unit is a 2/1. Per research, he's selling for exactly what he paid for them; 235k. That puts me at 78k per door and $92/sq ft. That seems pretty good compared to the six month comparable sales of $99.8k/door and $132/sq ft in that immediate area. The average rent for a 2 bed is 680. 

He's asking for ten percent down with 5-6 percent interest. The only terms I'd accept would be 5% on a three year balloon with a 30yr amortization.

I have a potential JV partner who's interested in real estate, but doesn't have the time. I'm thinking of offering him a 60/40 partnership (the 60 being his share).

I figured the numbers like this:

2,040 gross rent. tenants pay utilities. 

minus 10% repairs, 10% cap ex, (it's an older property), 10% management, 7% vacany, $80 tax

= 1,613.2 net

minus debt service ($1,135)

= 478.2 net net

on a  60/40 deal he'd make 286.92/month, 3,443.04/yr, and 13.77% cash on cash return (assuming acquisition comes out to 25k total)

Is there anything here I'm missing? Anything I should be wary of or take into consideration?

Thank you BP!

PS. bear in mind I'm of course willing to take a smaller share for myself if the JV partner wasn't happy with his estimated return.

Anybody here invest in Florence Arizona? Looking to connect.