Ideas/Resources on Phoenix Multifamily

[Joel G.]

Hey All,

It's been a long time since I last posted - I've been travelling for work and am back to the grind on trying to find my first property here in Phoenix. As a quick update, I've narrowed my search to finding a duplex-quad that I can buy and hold as an owner occupant. Ideally, I'd be near central Phoenix or Scottsdale; however, I'm open to checking out Mesa, Gilbert, and Chandler. I'm not looking for a huge rehab project, but am also not afraid to put some work in on a property.  

I've been working with an agent who has set me up on MLS searches for multifamily units in the valley; however, I keep finding that the hits are all grossly over priced. After using the 50% and 2% rules, I'm finding that I'd need to offer $50k - $100k (on the low end) below asking price to get any sort of return! I've also cruised around these neighborhoods for FSBO signs and see the same results where the owners want some astronomical dollar figure on their house.

I've got a couple of questions for you all: 

1 - I've been getting a bit frustrated and am wondering whether there are other Phoenix investors who are experiencing this? If so, any advice/thoughts? 

2 - Are there any instances where it'd be acceptable to go below the 50% or 2% rules? I've been aiming for $100/door since I'm getting a conventional loan. I'm assuming there has got to be some sort of premium you are willing to "pay" to live in an A class neighborhood vs a C class neighborhood - am I correct? If so, how wise is it to close in on this margin?

Thanks for the help! Looking forward to all of your replies.