BRRRR in Phoenix Area- Small Multi-Family Advice Needed

[Jessica Jordan]

Hello new investor here, my husband and I are interested in purchasing a smallish multi-family property (5-7 units) in the Phoenix area. Our goal is to BRRRR our first property and recover most if not all the capital invested (swinging for the fences, I know). The problem I'm running into is I haven't seen anything on MLS that would come close to what we would need to offer in order to pull out our initial investment. I've seen a couple off market deals that are slightly more favorable. The going price seems to sit around 200-250k/unit (regardless of NOI), which given the limits of the rental market I am struggling to make the numbers work. Has anyone had success BRRRRing in this market? How did you locate deals, are there submarkets that behave more favorably to this strategy? Is it even worth contacting an owner if you're offering 75% of asking?

[Ryan Swan]

@Jessica Jordan you'd need to buy something off market directly from the seller. It's not worth yours or your agents time to offer 75% of list price for properties on the MLS...most will be sold at or above list price pretty quickly.