All Forum Posts by: Andrew Linderer

Wholesalers usually aren't hard to find.  Search around on BP for wholesalers in Phoenix and I bet you find more than you can keep up with.  If you guys are only putting 3.5 down are you going to live in it while you fix it?  Have you looked into a 203k loan?  That would allow you to get a loan for the purchase price and for the rehab cost as long as you are living in it.  The hard part about buying something to live in from a wholesaler is that they usually want to close in like a week or 10 days which is tough to do with traditional financing.  Talk to your lender and let them know what you are wanting to do and ask if they can set you up so that you can close quickly once you find the deal.

Will do my best to make it out. Might be late. Day job is going crazy and we sold 3 houses in Jan that close this month so it’s good busy but it’s still busy.  :)

Personally I’d stay away from Glendale for the long game and here’s why. Property value especially around Grand Canyon University has gone up. The college has poured tons of resources into the community but I don’t trust it long term. The guy running Grand Canyon is the same guy who was running University of Phoenix and while that place grew like crazy while he was there it kinda tanked after he left. So if your doing a quick flip and you can find a deal I’d say go for it but I wouldn’t personally tackle a buy and hold in that market because I think the appreciation is fake and could be a bubble based on the University. Just my two cents. Glendale’s got a lot of problems with drugs and crime as well. Ask any cop. I’d especially steer clear of Grand Ave and pretty much anything south of Grand. North Glendale has some potential but the spread is usually pretty thin from what I’ve seen. Happy Hunting!

Phoenix is a fun market.  Tucson is great too.  There are deals to be had if you're willing to do the work.  Personally I think the multifamily rental market in phoenix is too expensive but for the right person it's probably a great deal.  My group has had better luck with rentals in Tucson.  

Biggest thing about phoenix is that our neighborhoods are very diverse for Single Family Homes.  By that I mean that it's not uncommon to see a 200-250k house across the street from a trailer park.  And there could be 500k houses right down the street.  So you really have to be specific when you run your comps or you're going to end up way off base.  

So location is huge but next depends on the property. If it’s a rental, it’s gotta cash flow. I like value add properties so the sweet spot on a rental is something that cash flows now with a value add potential on top of that. For flips I’m looking for value add. This applies to rentals and flips but is more important on flips while cash flow is more important on rentals. Does the property have room for an addition? Is it beat up or already remodeled? Could I add a pool? Do a renovation, fix the landscaping, etc. There are some properties that look good at first but are on too small a lot to do an extension or are already halfway through a remodel or somewhat updated and I always pass on them in those cases.

Welcome! Welcome! I'm an investor in Phoenix but I've got a couple properties in Tucson as well.  There's not quite as much competition in the multi-family space down there but definitely a need for affordable housing.  

We just did a deal with Bank34.  They had the best terms for our multifamily refinance.  So far so good.  

We use Arizona Business Bank for our checking account and I've been very happy with them.  Haven't done any loans with them but they are on the smaller side as far as banks go and when we signed up they said they do some portfolio lending and things like that but it's usually after a relationship is developed and it's on a case by case, deal by deal type of thing.  

Still haven't found a good lead management tool but we are currently implementing ProsperWorks CRM that may do some lead management for us.  I'll let you know how it goes. 

I did start using bitrix24 for general project management.  It's pretty slick.  The mobile app is not amazing but the cloud based computer version is pretty cool.  it might have too many features making it a bit difficult to get used to but the gantt charts are pretty slick. 

Thanks Gino,  That makes sense.  

I'm still struggling with how to structure the deal so it works.  Wondering if anyone has insight into this issue. I'm in Phoenix looking for small multifamily complexes. I'm finding a lot of properties that are selling but the numbers don't make any sense to me. I'm wondering how investors are buying these so they make sense? Are they buying them with 100% cash down or doing something creative with financing? I'll give an example.

https://www.redfin.com/AZ/Tempe/2025-S-Granada-Dr-85282/home/28297152?utm_source=myredfin&utm_medium=email&utm_campaign=instant24_listings_update&utm_content=refresh_with_promo&riftinfo=ZXY9ZW1haWwmbD05MDQ0ODI5JnA9bGlzdGluZ191cGRhdGVzX2luc3RhbnRfMjQmdHM9MTUwNjUwODYwODIyNiZhPWNsaWNrJnM9c2F2ZWRfc2VhcmNoJnQ9aW1hZ2UmZW1haWxfaWQ9OTA0NDgyOV8xNTA2NTA2OTM1XzMmdXBkYXRlX3R5cGU9MiZzYXZlZF9zZWFyY2hfaWQ9MTg0MTg2NjYmbGlzdGluZ19pZD03NjU1NTc1MyZwb3NpdGlvbl9udW1iZXI9MA==

So my math says that this is a 4plex that rents for $1000 per unit/per month plus 240 per unit/per month HOA to take care of the landscaping etc..

So if you do $1,240 x 4 that's $4,960. After multiplying by .95 and .55 for vacancies and expenses it's roughly $2600 a month but if it sells for $620,000 then even a 30 year mortgage at like 4% with 20% down doesn't even break even.

My guess is that an investor would obviously buy this differently than a traditional 30 year mortgage but I'm curious cause almost all of the small multi-families that I'm looking at are similar, even the ones that I get from wholesalers.

I guess my question is: Who is buying this type of property and how? It's not a deal the way I do the math but properties like this are clearly a deal for somebody cause I see sold notices on them all the time and I want to know how.