Analyzing 4 Plex in Phoenix

[Megan Alice]

Hi everyone, I’m looking at a 4 plex in Phoenix (Sunnyslope area, C neighborhood) and wanted to know if you would make this deal:

$300k purchase price, 25% down. All 4 units completely remodeled, new roof, new plumbing, new electric, new windows. Three 2 bed/1 bath, one 1 bed/1bath. Rents $795, $750, $725, $550, plus or minus. Cap rate 7% and cash flow approx $620/month.

Would you do that deal?

Thank you!

[Ali Ahmed]

Very similar to a property I am currently in contract with in Phoenix. The difference is you have new roof, plumbing, etc..

I would totally switch my contract for this.

To me, if you have some money from your day job or some extra cash flow from other properties, it is okay if it gets a little less than 1%.

Cheers!