All Forum Posts by: Jeremy Fenceroy

Hey @Patrick O'Sullivan. Lot's of questions. :-)

Are your tenants mostly Class C tenants in downtown Phoenix as well?

Is there a Zillow premium or something that get's you more exposure? I'm not familiar with that, but happy to take a look.

We have recently started marketing on Apartments.com as well. Have you found that to be a good source for you?

Having never been an agent I'm not too familiar with the inventive structure on bringing tenants to property managers. Why would agents be unlikely to bring tenants at that rental amount?

Thanks for sharing. 

Hi @Allie Pfannenstiel. Thank you for your reply. I'm at 14th Ave and Polk. The building is in good condition. As tenants have left we've been fixing up the apartments so that everything is working and is freshly painted and clean again. No frills apartments though. Basic 1BR/1BA.

The FB marketplace tip is great. Will definitely follow up on that. I forget that everything is on FB marketplace now.

More details:

The property is a 14-unit with 1BR/1BA units around 500sf. We're currently priced at $850 plus $133/mo for RUBS, which include electric, water, and Wi-Fi. This pricing seems like it should be competitive with similar properties in the area. My property manager has the vacant units listed on the MLS, where they are reposted to Zillow and several other sites.

We are shooting for 3x income, but might settle for as low as 2x, if the person seems like a good candidate. Must have not terrible credit, and no significant criminal record. Requesting 1st month’s rent, and 1mo security deposit. The deposit we are willing to collect over the first few months if needed to lower the cost of entry.

We are getting some calls, but lots of no-shows when it comes to appointments for showings.

We had a lot of problems in the past with tenants bringing in drug dealers, homeless, and various other criminal activities. We have cleaned out those tenants, and have security cameras, and access control pads to the courtyard to deter unwanted elements from coming by. That has reduced the loitering by homeless, and criminal elements a lot, but we do still occasionally have some issues in the parking lots and the areas outside the courtyard. A full-time security guard might help eliminate this, however, for a property of this size, that is simply cost prohibitive.

I’m wondering if the market is just tough for everyone right now, if we’re looking in the wrong places, or if our criteria are too tight for tenants willing to live in this class C- neighborhood.

Would love to discuss/brainstorm this in more detail with anyone who has experience filling class C units in this downtown Phoenix market. And I am also happy to discuss my experience in the area on valuing small/medium multi-family properties, and running short-term rentals in the Phoenix area. If interested, please DM me.

Jeremy

Any small/medium-size MF owners/managers in the downtown Phoenix market with tips and leads on finding reliable and responsible tenants for a property in a class C neighborhood in downtown Phoenix in today’s market? Units are 1BR/1BA 500sf. Recently did a clean-out of several disruptive, law and lease-violating tenants, but have been coming up empty in finding solid replacements, and could really use some revenue coming in again. 

Would love to discuss in more detail with someone with experience in the downtown Phoenix class C market.

J.J. Fenceroy

I'll be there. First time. If you know of anyone interested in sharing a room at the venue hotel, let me know.

@Kevin Sobilo, I have a property manager that sends me a distribution of essentially net income. After reading Profit First my impression was that you should be able, at a glance, to look at your allocation percentages and get a sense of how each account is doing and figure out how to decrease expenses and increase profit and owner accounts while setting aside taxes. 

Using Profit First how do people deal with the fact that the money that flows into the Income account is not gross real revenue, but rather net income that hasn't yet accounted for expenses for the property I pay myself. 

I have some ideas, but they tend to complicate what is intended to be a simple system, so was wondering how others are dealing with that challenge.

I'm a real estate investor living in Phoenix, but also invested in Florida. Heading to BPCON 2022 from 1-4 October and I've got a double room at the Hilton San Diego Bay Front hotel with two queen beds. Happy to split the costs if anyone wants the convenience of being at the venue for half the cost. Message me if you'd like to discuss.

Cheers!

J.J.

Thanks for sharing your experience on the background of this neighborhood. I've looked at the numbers and feel comfortable with my margins. It would have been much more difficult to make this deal work with regular investor financing, but the VA option makes the numbers work even in the current rapid inflation of the Phoenix market. My focus is on positive cash flow; and while it's risky trying to predict the market in the short term, I believe there's additional potential for solid appreciation on this property in the long run. I think it will suit my needs well.

Welcome @Cory Palmieri! I just went under contract for a quadplex in Phoenix that I will be purchasing with a VA loan. Happy to share my experiences with you, and am also happy to plug @Jake Kain's FREEdM meetups. One of the best real estate meetups in the Phoenix area for multi-family, and for veterans! I plan on attending the veteran's edition this Friday. 

@Sarah Stevens house hacking is totally an option and any of the options you mentioned could work. I had been looking for quads in Phoenix myself for the past 4 months, and recently went under contract for a quad on Garfield. I have househacked before in Florida and Texas as well. If you'd like to connect I would be happy to share my experiences househacking, and my recent experience looking for residential multi-family properties in Phoenix.