Phoenix duplex added to my real estate portfolio

[Mary McGinty]

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $620,000
Cash invested: $145,000

New construction duplex build in 2022. Each unit is a 2 bed, 1 bath with an inside washer/dryer and a beautiful balcony. Separate electric and water meters. Conveniently located in downtown Phoenix, walking distance to Chase Field, great restaurant and local nigh night life. A rapidly growing HOT area! Easy access to all major freeways.

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

New construction allows for rent ready properties, turnkey, my favorite. Purchasing four or less doors keeps you out of a commercial loan. Commercial loans tend to have higher interest rates and requests more down.

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

My realtor, she knows what I am looking for.

My win: the original asking price was $690000. When the inspection was performed and with the aid of comps, the unit appraised at $620000. So, we addended the offer to reflect the appraised price. Which was accepted.

How did you finance this deal?

The down payment was my own money and the loan was from my bank.

How did you add value to the deal?

No value add since it is a new construction.

What was the outcome?

Before purchase it was already rented out by the builder, they need to pay their construction loan. Since then the tenants have moved out. Both units are vacant and for rent.

Lessons learned? Challenges?

Challenge: I purchased this as the market was beginning to slow down due to rising interest rates. I expected the tenants to stay. One month after close is when they moved out.

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

My agent Kenzie Weitzeil. 602-563-4591
MYND my management company