@Mike Wood Thank you so much for your input. The buildings in the area are selling between $55k to $65k per door. The thing is that those buildings are usually neglected with much maintenance deferred. Also the numbers don't make sense because they're asking too much for what they're collecting in rent. They usually only collect between $450 to $550 because the condition they are. On the two buildings I bought I installed new roof A/C units, new roofing shingles and I'm replacing some windows and adding ceiling fans. That way I was able to increase the rent and tenants are okay to pay more if they see I take care of the building. I don't mind having to invest 30% of the value in the numbers make sense and I'm getting at least 12% cash on cash return.
I would prefer to build a fourplex but if it's more difficult to qualify for a loan because it's more risky, then I won't mind building just a duplex to start building more credibility with my lenders.
So far I have only asked Bank of America and Desert Schools Credit Union and none of them offer constructions loans any more. I haven't try my local banks yet but I'm hoping they could help with that.
@Dalton Osmanski My project would be in West Phoenix where I already own two triplexes, all units are two bed and 1 bath and I'm collecting rent of $630 per unit.
