All Forum Posts by: Scott Beebe

@Erik W., your points are very good and thank you!

1. Yes, if it was not for the government there literally would not be any jobs there. Border Patrol will always be there as Ajo is 40 miles north of the Mexican border. There is a contingent of contractors there now building the border wall but once done, they are gone. After doing more research, I can see there is a 29% unemployment rate in Ajo and from what I can see after viewing the town and the property, there is not much development going on. Ajo is a quaint little southwest town but quite isolated and not known for growth or opportunities.

2. The property is roughly 120 miles from my location. There is only one other PM in town. I was considering moving there if I were to move forward on this purchase so I would be onsite.

3. Yes the maintenance and operating costs will be higher as others have said. I have requested to see the owner's Schedule E. We'll see what happens with that.

Another thing, I have had 5 banks and credit unions turn down financing because of the location and lack of growth but two "alternative" financiers interested. Probably not a good sign either.

I am seriously thinking this is not the best investment.

@Michael Ealy, Thanks a lot for the insight! That definitely helps!

@Stone Jin: Yes, very true. Border Patrol jobs will always be there. A big chunk of the jobs now are contractors building the border wall but once done, they leave. The rest of the town is artists, retirees, snowbirds, and entrepreneurs. 

Thanks for your post.

Hi Erik,

Thanks for the reply. Here is some more information. 

I plan on putting 25% down. 30 year amortized loan with a 10 year balloon at 7%. Payment comes to about 1565/month.

Goal is cash flow. Building built in 1949. Current PM already has contractors/maintenance in place.

Not sure if that helps.

I am new to multi-family investing. I have been doing SFH investing for some time now. I found a deal in Ajo, AZ (population around 5000 people) for a 10 unit complex for 335K. Will be fully occupied next month. I need some opinions to see if this would be a good deal. My concern is that the town of Ajo is very small and jobs are not plentiful however there is a lack of rentals and tenants waiting for rentals. Any opinions are would be welcome. Thanks!

Total gross annual income: 76609 (at 100% occupancy)

Total annual expenses: 29677

NOI: 46932

Purchase price would be no more than 300K

thanks Mike

Hi,

I am looking for portfolio lenders in Arizona. Does anyone know of reputable lenders? I tried reaching out to Caliber Loans but never heard back.

Thanks.

Hello,

Anyone know of a 10-15% down multi-family loan out there?

Thanks,

Scott

Thanks for the feedback. Makes sense. But the property I am purchasing in FL is an investment as there is a tenant already in place until 1/18. Hence, I had to get an investment mortgage. I plan on moving in as my primary residence in 2/18.

Would it make more sense to use the proceeds from the sale of the AZ property to pay off the investment mortgage or use those proceeds to buy an additional rental property in FL?