Fix and Flip 4 Plex in Mesa AZ - 91% CoC return in 13 months

[William Hamburg]

Investment Info:

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

Purchase price: $434,000
Cash invested: $66,000
Sale price: $600,000

Fix and flip 4 plex in Mesa, Arizona. Property needed a lot of work and the area was a little sketchy.

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

The cap rate at the accepted offer.

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

We ran the numbers on 80+ properties and FINALLY found this one and the other 4-plex posted here.

How did you finance this deal?

4 Partners. 25% down payment.

How did you add value to the deal?

The market rents were very low and the building recently appraised more for listed price. We visiting the property and could see it didn't many major repairs it was just a poorly run apartment complex. Lots of trash everywhere. People blasting music, stucco missing from everywhere, etc.

What was the outcome?

Fixed it up, raised rents on new tenants to market rates, fixed the roof, replaces air conditioners, washers, dryers, hot water tanks, stucco repair, and paint.

Lessons learned? Challenges?

Don't buy property in sketchy area. No matter the CAP rate or income potential. Own properties you would live in.

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

Yes