It’s not often good properties come on the market.  We’ll this is one of those times.  If you look through many of the Phoenix small income inventory you’ll almost get a feeling of disgust, and many people get turned off from investing in these properties.  Often this is for good reason.  Many of the multifamily properties on the market currently are in need of help, in need of caring owners.  You cannot just buy an income property and expect it to be there and produce income without any input.

This brings me to this property.  

This is a 4 unit apartment property built in the mid 80’s a period which experienced a spurt of multifamily growth.  This is one of those buildings where the owner does care and nurtures the building with high expectations of a return for his effort.  The property has served well and will continue to be a positive cash flow property for the new owners.

Why should this property be at the top of your list?

1.  it’s priced competitively.

2.  Its well maintained.

a.  New commercial strength roof in 2006.

b.  Exterior painted in 2005.

c.  3 newer heat-pumps (A/C)

d.  Low maintenance desert landscaping without being bare.

e.  Very good shape of interior units.  1 unit has a completely new kitchen.

3.  The owner pays NO utilities.  It seems difficult to grasp the benefit if this.  In most properties the owner has many uncontrolled and unpredictable expenses.  Water, sewer, trash are amongst them, especially in units that have private washers and dryers and dish washers.  The owner is subject to the tenants whim about saving and conserving water.  In the case of this property, that burden is reduced to 0 (zero).  It is up to the tenants to control their own expenses and any lack of such has no affects on the owner(s).   The only checks the owner writes are the mortgage check and any maintenance.

4. We listed many of the capital improvements above.  Potential buyers often overlook deferred maintenance.  Its not only about cash flow.  When you look at an APOD or Cash flow worksheet, these don’t include capital improvements and they certainly don’t show that in a year or two you may need to change a roof or put in an A/C.  These types of expenses will dig deep into your pockets and often take most of your cash-flow away.

Residents like to live here:

1.  It’s a quite seclude mostly single family home location near the Phoenix Mountains.

2.  Each units has a private washer and dryer.

3.  2 bedrooms and 1 bath in each unit with double sinks.

4.  Great views.  The upstairs units have mountains and city views form the balconies.

5.  1 bottom unit has a good sized yard.

6.  Well maintained property.

Download an extensive financial analysis of the subject property.  It has all the assumptions, current rents, and expenses.  Each is accurate based on 2007 and current data.  The analysis is for a 7 year hold and 20% capital input.  Should you need adjustments to the analysis, such as a different rate, or down-payment or after tax returns then please call me or email me and I can make them.

Current pricing is on the analysis.  Principals only please.

Download the North Central Phoenix Fourplex Financial Analysis.(PDF)

If you have an interest in this property or other multifamily properties please give us a call.  602.358.1392

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