First Deal in Arizona - A Bulk Purchase of 16 Condominiums

[Craig Lessler]

I recently sold my interest in an out of state property (a syndication and did a 1031 exchange into 16 condominiums in Phoenix. The units were mismanaged, rented substantially below market, had a few vacant units, had significant deferred maintenance and were in need of cosmetic improvements. The units are in a desirable location, have a low and stable HOA fee and have rented easily following renovation.

I have already improved the vacant units and rented them, removed the problem tenants and am quickly bringing the other units up to par and closer to market rents.

Even with factoring in the cost of the property manager and allowing for a vacancy factor and a budget for repairs and future capital expenses, the property has a solid 8% CAP with the increased rents.

I am hoping to do another 1031 exchange in the not so distant future from another out of state property into a bulk purchase in the Phoenix valley.

Reading the BP posts and listening to the podcasts and webinars is giving me more inspiration.  The support that the BP members give each other is also encouraging.