Finding The Small MFR Deals Around Phoenix

[Brian Volland]

I am just starting to look for small MFRs on the west side of Phoenix (Glendale/Surprise/Peoria/etc). 

At this point, showing up to the game as late as I am, is my best bet to find another investor who is trying to offload and/or cold calling owners? 

The MLS hasn't been very promising so far nor Craigslist when it comes to cashflowing properties.

[Ryan Dossey]

I believe for a VA loan you need to be under 4 units correct? Your best bet would be to build a mailing list using List Source or something similar. I'd then dig through the list looking for owners with multiple properties, owners who didn't put them in an LLC (non-corporate owned), Senior owners, as well as out of town owners.

Multiple Properties: They may be willing to cut their lowest performer giving you an opportunity for value-add. 

Non-Corporate: They weren't sophisticated enough to utilize a corporate veil. They may sell for less than the going cap rate.

Senior Owners: Folks wanting to retire/cashout.

Out of town: Someone sick of the MF turnover.

**Bonus** Owner Occupants: You may snag someone who is wanting to stop living in a MF.

If you're going to do direct mail I wouldn't use a mail house. I would do it in house. Your list is going to be small enough that you might as well personalize and do it on your own. 

If you're wanting to owner occupy you have an advantage over the investors that are likely mailing them. 

Template:

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Dear Mr/Mrs Home Owner, 

I hope that you're having an awesome day. My name is Brian Volland. I'm looking to buy a small apartment building in the (whatever areas they're in) area. I would like to discuss buying (property address) from you. It matches what I'm looking for and I'm already pre-qualified for a VA loan.

Sincerely, 

Brian Volland (handwrite your name as well as phone #. Throw a handwritten date top right of the page as well) 

Ps: Call anytime. I look forward to hearing from you and I appreciate your time. 

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I would send this in a hand addressed envelope to anyone that you seriously want to meet with. If you have a S/O get them to help and it will go pretty quickly. I'd at the minimum use some pastel invitation style envelopes. Print the letter on just regular white paper. Most homeowners are sick of the "yellow letters".