1% Rule Multifamilies Phoenix

[Tatiana Conta]

Hi guys,

Looking into fixer upper multi-families 4:2, to owner occupy BRRR Hack in Phoenix AZ. Currently learning how to evaluate deals with comps & ARV and I know by listening to the pod casts that the 1% rule is a good approach to weed out deals so you don't drive yourself nuts but I am not finding any 1%.. am I crazy ?

Thanks in advance for any insight on the subject in Phoenix

[Ryan Swan]

@Tatiana Conta The last time you could get 1%+ properties in phx was probably around 2011/2012. Since then it's been an upward price climb away from that metric. The 1% rule, while a good back of the napkin approach, completely ignores price appreciation which is the single biggest driver of returns in Metro Phoenix. Case in point, I helped some clients purchase a fourplex in Jan 2020 for $440k...just sold it for $550k less than 12 months later which is ~25% gain.