So here I am again...and this time with cashflow options in different types of properties.
As some investors asked me about higher than 8%-9% cash-flowing properties I decided to check multi-units in my last trip to Phoenix. I looked at a few foreclosed 4-plexes in Central Phoenix that can be bought for $ 75,000K- $ 90,000.
Each of those units had 2 bedrooms and 1 bath, some had appliances some didn't and each unit can rent for $ 550- $ 600 per month. Which means $ 26,400 per year, provided all units are rented all year long. Total yearly expenses (taxes, insurance and HOA) amount to $ 9000 and in those units you'll need a very dedicated local property manager which would charge a minimum of $ 2500 per year. Those numbers would make a cashflow of up to 15% but you'll need to remember appreciation in those locations and maintenance costs would be very different than the ones in better neighborhoods.
Let me know if you are interested!
As for single family homes: cashflow could get as high as 10% in nice areas which are farther from downtown Phoenix ( 30-45 minutes drive) and they'll drop to 7%-8% in good neighborhoods in or closer to Phoenix. In those cases houses would range from $ 65,000- $ 150,000 or higher and the maintanance expenses would be way lower than in the multi-units. Those will appreciate more when the market starts going up.
Let me know if you are interested in additional information!
More coming up soon...
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