North Phoenix Multifamily Deal - 16 units / Off Market deal / Ridiculous Upside / Already cash-flowing Address: 1703 W Mountain View Rd. Phoenix AZ 85021 Purchase Price: $620,000 Cash/Hard Money $155,000 below recently Canceled MLS Listing!! Approx. Price Per Door: $38,750 Cross Streets: 19th Ave and Peoria APN/Two Parcels: 158-21-074 & 158-21-075 Taxes 3,145.52 (2013) Built: 1982 Lot Size Combined: 16,991 sq/ft (.39 Acres) Apartment Building Size: 9,024 sq/ft Laundromat: 126 sq/ft Construction: Slump Block City Zoning R-4 County Zoning M-H/Multi-Family, High Density 16 Units: 8 units =1bed/1bath 8 units = 2bed/1bath Details: -New Roof in 2011 -Individually metered -A/C Units serviced in 2011 -$400 income per month/$4,800 from laundromat! (Income not calculated in Return Numbers) -Located near: hiking, Metrocenter Mall, Castles N Coasters, shopping, restaurants, I-17, and Route 51 -Below we reflect Multiple Plays for both Short Term and Long Term Strategies. Current Occupancy: 13 of 16 units occupied 1bed/1bath: Total of 7 units occupied 2bed/1bath: Total of 6 units occupied Current Rents 1bed/1bath= $415 per unit (5 units with this rent amount) 1bed/1bath=$425 per unit (2 unit with this rent amount) 2bed/1bath=$495 per unit Annual Expense Allowance: 40% (Vacancy Allowance,Elec Exp, Ins Exp, Landscape Exp,Legal & Acct, Maint Exp, Mgmt Exp,Pest Control $1,200, Trash Exp, Wtr/Swr Exp) Current Rent Price with Current Occupancy 1b/1ba = 5 units @ $415= $2075 1b/1ba = 2 units @ $425= $850 2b/1ba= 6 units @ $495= $2970 Total Combined Monthly Gross Income from Rents: $5,895 monthly Total Combined Yearly Gross Income from Rents: $70,740 yearly Total Comb. Yrly Net Inc. from Rents w/ 40% exp allowance: $42,444 Buy $620K + $10K(Closing Costs)=$630K All into It ROI: 70740/630000= 11.2% ROI Cap: 42444/630000=6.7% Cap Short Term Upside: Most Current Rent Price with Max Occupancy 1b/1ba = 5 units @ $415= $2075 1b/1ba = 3 units @ $425= $1275 2b/1ba= 8 units @ $495= $3960 Total Combined Monthly Gross Income from Rents: $7,310 monthly Total Combined Yearly Gross Income from Rents: $87,720 yearly Total Comb. Yrly Net Inc. from Rents w/ 40% exp allowance: $52,632 Buy $620K + $10K(Closing Costs)=$630K All into It ROI: 87720/630000= 13.9% ROI Cap: 52632/630000=8.3% Cap Long Term MAX OUT POTENTIAL:Rehab, Increase Rents w/ Max Occupancy Rehab: Total Suggested Investment: $30K $24K Update Units ($1.5K per unit to update appliances, flooring, 2 tone paint) + $6K (update outdoor walkway/hallway with carpet flooring) 1b/1ba = 8 units @ $500= $4000 2b/1ba= 8 units @ $625= $5000 Total Combined Monthly Gross Income from Rents: $9000 monthly Total Combined Yearly Gross Income from Rents: $108,000 yearly Total Comb. Yrly Net Inc. from Rents w/ 40% exp allowance: $64800 Buy $620K + $10K(Closing Costs) + $30K (Rehab)=$660K All into It ROI: 108000/660000= 16.3% ROI Cap: 64800/660000=9.8% Cap Cash on Cash Return:Max Out Potential Buy 620K +10K (closing Costs) + 30K (Rehab)= $660 All Into It Sell $800K $800-$660= $140K Profit 140K/$660K= 21% Cash on Cash Return ACCESS: Call to set up inspection. FINANCING: Cash/Hard Money TERMS: -Open escrow with $10,000 refundable earnest deposit with a cashiers check made out to our Title Company of choice; please contact us for more details. -$10,000 earnest gives you a 5 day inspection period then earnest becomes non-refundable on the 6th day. We will provide rent rolls/ P & L for subject property, and access to units. -15 Day Close Buyer pays all closing costs and escrow fees. -All Security Deposits will be transferred at the COE. -Call me at 602-292-5747 or PM to take the next steps
Posted on: Tue, 02 Sep 2014 22:03:42 +0000
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