Average Cash Flow Per Door In Phoenix Metro Area

[Wes Blackwell]

Hey Everyone! 

I'm writing this post for a few investor clients of mine, and wanted to see what the average cash-flow per door other investors in the Phoenix metro area (Scottsdale, Tempe, Gilbert, Glendale, Chandler, Mesa, Peoria, Surprise, etc.) were getting on their rental properties. 

Of course, the more details you share about the property the better, so here's a generic outline to make sure we get all the necessary info to evaluate what to expect:

• Property Type: (Condo, Single Family House, Multifamily Property)
• Total Doors:
• Purchase Price:
• Year Bought: (Buying at bottom of market obviously makes for more cashflow today)
• Financing: (Cash purchase, financed with percentage down, lease option, etc.)
• How You Found Property: (MLS, Off-market, Wholesaler, Foreclosure, REO, etc.)
• Property & Neighborhood Rating: (A-F, 1 to 10, neighborhood quality and condition of property)
• Net Cashflow Per Door:
• Cap Rate, CoC, Appreciation, Etc.: (Any other metrics or ROI figures you think are important to the deal)

You can either answer in this format or write a paragraph or two including all the details. Figured this would help some beginners know what to expect and see what returns other investors are currently getting in the Phoenix market.

Let's see who has the highest net cashflow!

[Alvin Uy]

Originally posted by @Account Closed

 I've done this for so long it's second nature. 

Most people get hung up on Fix & Flip which is the riskiest highest taxed, or Buy & Hold and hope for $100 a month cash per door. I think that's a mistake, but to each his own.

I average $20K that I get as a Down, and $500 per door cash flow on a $50k investment. There is no bank qualifying I need to do or worry about 25% down or debt ratios or any of that stuff.

I keep $5k per house in reserves so that I can always make the underlying payment and cover emergencies. In the event of a turnover, I simply see to it that it is habitable and safe. Other than that, any rehab, maintenance, upgrades are entirely up to the Tenant Buyer or the the new Tenant Buyer.

I never offer interest on the carryback. Interest rarely comes up and I simply write up the agreement.

I find that I have a mix of self employed and W2 but my preference is self employed. Self employed tend to think like I think and they are more resilient to changes in the economy.

 Do you have any experience doing this in CA? 

Edited: Nevermind.. I saw your post about this being difficult in CA. Im interested in doing a possible JV if you have anything so I can learn the mechanics of this strategy.

[Scott Yarnall]

Thank you Wes! I appreciate your feedback.

[Scott Yarnall]

Thank you Wes!!! I appreciate your feedback.