4-Plex Flip in Phoenix

[William Hamburg]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $333,000
Cash invested: $88,000
Sale price: $550,000

Purchase a 4 flex, fixed it up, placed new tenants and raised rents all through covid. Sold it at a great profit in 13 months.

What made you interested in investing in this type of deal?

The cap rate and low purchase price.

How did you find this deal and how did you negotiate it?

We ran numbers on about 80+ properties and literally the day we gave up and called our partner and said there are no properties available in this area we need to change strategies is the day we found this and the other 4 plex listed on here

How did you finance this deal?

4 partners, 25%. This made it easier for us to help with down payment and repairs.

How did you add value to the deal?

Updated kitchens, hot water heaters, landscaping, paint and cleaned up a very neglected property.

What was the outcome?

A successful flip!

Lessons learned? Challenges?

It was very scary for a while there. When 3 out of 4 tenants weren't paying I thought to myself, what were we thinking? But because we bought it right and had a good team of contractors, we were able to make a nice profit on this and the other 4 plex in Mesa.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Although I am a licensed realtor we decided to work with a local realtor.