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Updated about 6 years ago on . Most recent reply

User Stats

14
Posts
8
Votes
Seth Johnson
  • Investor
  • Phoenix, AZ
8
Votes |
14
Posts

9 unit 2bed/1bath Apt Bldg in Scottsdale

Seth Johnson
  • Investor
  • Phoenix, AZ
Posted

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $800,000
Cash invested: $924,000

I purchased the property in cash and self funded the rehab. I will do a cash out refi at the 2 year anniversary and take out 75% of the appraised value. Comps right now show it should appraise for 1.2-1.3 million. The monthly cashflow number is high right now, due to the lack of debt service. Once I refi the property I will be able to pull out virtually everything I invested in it, and it will still cashflow around $1200/month.

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

I bought this property from another investor who had done about 60% of the rehab. He has issues with his contractor and wanted to be done with the property. I purchased the property and finished the rehab which included, exterior paint and landscaping, 9 new AC units, and all new appliances. Additionally 40% of the units needed tile, cabinets and other cosmetic finishes.

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

My realtor brought it to me via the MLS.

How did you finance this deal?

Self financed with cash.

How did you add value to the deal?

Completed the renovation that the previous owner had started.

What was the outcome?

The building has been fully occupied and performed great since the rehab was completed.

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