For sale is this very well cared for income property in North Central Phoenix.  It has a total of 4 units, each with 2 huge bedrooms, 2 full bathrooms and laundry facilities in each unit.  It’s a turn key operation with little in deferred maintenance and ready to go: fully rented.

Location

The Phoenix fourplex is located in North Central Phoenix and specifically the eastern end of Sunnyslope near the Phoenix Mountains.  Close to major travel routs, a bus line and near the I-51 freeway.   Residents have quick access to lots of shopping, a hospital, some of the better schools in the valley, hiking and plenty of employers.

Features

Each unit has 2 large bedrooms and 2 full bathrooms (by full I mean with with a tub)

There are 3 walk in closest.

Mostly hard surface flooring, that means durability and cleanliness and foremost low turn over cost.

Newer roof installed in late 2009.

Plenty of parking: both off street (6-7 spaces) and on street (3-4 cars).

Numbers

Price: $170,000

Income:

Rent: $2,200 per month.  Market is $2,400

Expenses:

Water:  $220.00 per month

Trash: $80.00 per month

Taxes: $2,411.00 annual

Maintenance: $1,200 annual

Insurance: $740 annual

Get in touch.

Call Artur at 602.628.4349

artur@inphoenix.com

Some investment related articles we did at PhoenixMarketTrends.com

• Case Study: A Central Phoenix Condo From Lender Owned To Long Term Investment:

This is a case study of a condo purchased by an out of town investor.  It was a lender owned property taken from a plain dirty place to a wonderful inviting home.

• How To Search For Income Multifamily Properties, Duplex, Triplex, Fourplex, In Greater Phoenix.

There are several ways to search for multifamily properties, here and at Phoenix Market Trends and we review them here.

• Being An Active Investor Is The Way To Passive Income

I like this post because I believe you have to be responsible for you own assets and that includes real estate, though your involvement may be limited, but it needs to be there.

• Real Estate Investment Strategies: Opportunities For High Long Term Returns With Multifamily

Multifamily is now in a many year low.  You can find properties priced at the same levels at the 1980’s.  That’s just extraordinary and there is a clear reason for it.  Just the same, there are very good reasons why well purchased multifamily properties will do well in the future, maybe even the near future.

The map below shows some selected multifamily properties of interest.  They are selected for being in better rental markets.  Some are turn key ready: meaning buy and run a good business.  Others need some of a lot of work but the price reflects it.  I did not include any that are in risky areas that have higher then normal turn over.  Each property, though, needs to be investigated individually.  If you do have any questions about these properties please call me, Artur at 602.628.4349.

The property search here at Arizona Apartment Investor is a very popular destination: it has always included the ability to create automated updates of the searches you create. 

In essence you can select a city and property type like multifamily and you’ll get updates one a day or once a week of new properties that show up on the market or any price changes. 

We put together a quick guide of how to set up these auto updates: the benefits of doing so: and a short video of how to do it.

See how to set  up automated Phoenix property updates.

NOTE: You’ll be taken to the search at Phoenix Market Trends.  Simply select multi-family as a property type and you have a go.

It’s very quick and easy to set the searches up and you’ll love the updates: you’re in compete control of them as well: take notes, save favorites and get full details.

The location of this fourplex is one of the best possible.  Arcadia is a very in demand neighborhood in East Phoenix.  It’s in between major entertainment and employment centers.  The demand for housing is strong from both home buyers and tenants. 

What attracts people here is the unique established atmoshphere: the lush greenery, the beautiful surrounding mountains, the old and new homes from starter to luxury homes.  There are unique complexes like Three Fountains or the superb local grocery and restaurant Le Grande Orange, Postinos and Radio Milano all of which are within walking distance.

The location commends a premium rent and since it is an established neighborhood in the floodway of the urban living trend there is lower risk of both economic and physical vacancy.  In fact this neighborhood provides many opportunities for savvy investors.  The current status as long term residential apartment rentals can be changed to increase total income.  There are a few creative things that can be done which the location affords that could not be done as successfully elsewhere.

This is also a great property for an owner occupant or as a vacation home.  There’s enough room to create private yards and the covered carport in the back could be expanded to add parking. 

Snow bird can leaves one unit for theselves to remain vacant  while generating income from the other units or the owners unit can function as a short term furnished corporate rental when not in use by the owners. 

Location:  3637 E. Glenrosa Ave. Phoenix, AZ 85018.

This is the western end of the Arcadia neighborhood.  Read more about the Phoenix Arcadia neighborhood.

The property is priced at $399,000.  There are two identical fourplexes side by side.  Each is priced at $399,000  Both together have a lot size of just over half an acre (22,401 Sf). 

4 units.

3 one bedroom units     

1 two bedroom unit.

The income and expenses as noted above put the CAP rate at 6%.  That is lower then the market in general but it good for a premium property that with some good management and a little bit of creative work can generate much more income or be multi-functional property, one that replaces a condo for instance.

If your have some interest in this property please don’t hesitate to call us with any questions or for a financial analysis or some of the ideas regarding its use.

We put together a short-list of small multifamily properties from amongst the 400+ listing that are of some interest.  They are selected by location, condition and most importantly profit potential but without failure of considering what it will take to run them.

So the selection includes some very low priced apartments that will need fix up and still provide a good cash flow but also a few that need very little fix up but better management.

Click here to view the selected 2-4 plexes for sale in Phoenix, Scottsdale, Glendale.  See them on a map with full details and in some cases Google street view.

This will become a regular feature which we’ll expand to include more information. 

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

In Greater Phoenix there are about 30 lender owned properties or sale at this time in June 2008. 

The difference between an REO or lender owned property and a short sale is that the lender owned property is a foreclosed property.  It has been through the process, past the short sale.  The short sale is quite different because its still owned by the mortgagee who is trying to sell it for less then the outstanding mortgage.  The list attached has NO short sales in it.  It contains 24 lender owned properties or varying price and condition. 

Download a PDF list of the 24 lender owned multifamily properties.  This list contains basic information about each property.  Should you have any additional interest in any please call me, Artur at 602.628.4349.  or call me for any other questions.