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4 Reasons to Buy a 4-plex

Top Reasons to Purchase a 4 Plex in Phoenix Az

Are you thinking about buying an investment property? If so, have you considered multi-family properties?  Does the number of units scare you away?  If so there are many good reasons to consider purchasing a multi-family property.  Here we highlight the top four reasons to buy a 4-plex:

  1. The top reason to buy a 4-plex in Phoenix or elsewhere is because it instantly gives you four doors which equals more income.  Most likely you will have more income on a monthly basis from a 4-plex as compared to the income that you would earn from owning a single-family home.  Also it decreases your risk of vacancy.  If you live in one unit that chances are you won’t have a month in which all three other units are vacant.
  2. Great Financing Options ! With a 4-plex you may  qualify for an FHA loan if you plan on living in one of the units. With an FHA loan you can purchase a property for as little as 3.5% down and this allows you to be an investment owner with not much out of pocket cost.  Also, this allows you to save money for times of vacancies or repairs.
  3. Get to live for free.  If you plan on living in one of the units of the four-plex you may have all of your expenses covered on a monthly basis with the rent that you collect from the other three units.
  4. Great Practice for Owning Larger Multifamily Properties. Starting with a four-plex is a great way to get experience to then expand your investment portfolio into larger muli-unit properties.

For information on valuing multi-family investment properties such as 4-plexes visit here.

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Phoenix MultiFamily Property Management

Phoenix multifamily properties

 

 

 

 

 

 

Property evaluations are one of the most important aspects of Phoenix multifamily property management.  Part of our Phoenix multifamily property management includes our six step evaluations.

Step 1: Know your local marketing conditions by using the Freddie Mac Apartment Investment Market index found here.  This index provides useful information such as property price changes, employment changes as well as information on housing permits.

Step 2: Determine the unit mix meaning the number of studios, one, two and three bedroom units in the building.  Then know your area so for example if your building is near a college than studio units will be desirable.  However if your property is in an area with mostly young families than three bedroom units will probably be more desirable.

Step 3: Know your market rental rates by completing a rental survey.  With this step be sure to use rented units in your area with similar amenities.  If you are only able to find vacant comparable homes through Zillow or Trulia be sure to adjust the rate by at least 15% due to their inaccuracies.

Step 4: Estimate your costs by determining if you need a property manager or if you can self manage.  Also, look at capital costs such as new HVAC’s (especially in the Phoenix market) as well as roof replacement.  Keep in mind that overall costs should be between 35-50% of gross operating income.

Step 5: Calculate the CAP rate which is the net operating income divided by the current market value of the building.  The current market value is what you could sell the building for today for cash.  Be sure to contact a Phoenix multifamily property manager to help with this information.

Step 6: Determine why the property is listed for sale.  A good reason would be retirement.

 

 

 

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Laveen Property Management Success!

Rented Laveen Crossing Home!

RPM specializes in Laveen Property Management.  Our Laveen Property Managers just rented a property in Laveen Crossings in twelve days!  Laveen Crossing is a neighborhood in Laveen which is located within South Phoenix.  48% of the residents in Laveen Crossing are renters making it a desirable area for Laveen property managers.  Laveen crossing is  south of Apollo, east of 51st, north of Baseline and west of 55th Ave. This neighborhood is perfect for those seeking single-family homes. The community’s homes were mostly developed around 2005 and construction was completed around 2007.

We first rented this five bed/two and one half bath, two story Laveen rental home in 2014 for $1295.00 and it took forty four days.  Furthermore, in 2015 we saw the home rent for $1350 in ninety five days.  In 2017 the home rented for $1325 in fifty seven days.  Final last month, 2019  we were able to get $1595 in  twelve days!  The 2019 rental price represents a 23% increase from 2014.

Laveen encompasses around 48 miles of space.  It is close to downtown Phoenix so it is a good area for Laveen property management.

 

Visit Laveen for more information.

For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix
www.rpmphoenixvalley.com
602-358-8130
info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
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Phoenix Lease Agreement Creation

Our latest podcast is  now available and it closes our series on phoenix lease agreement must haves. To review; our first segment was about specific items to include in the lease.  Then our second segment reviewed lease payment information. In this segment we discuss HOA addendum, pet agreements and lease end/move out verbiage.  Our free tip relates to the conversion of the lease to month to month.  All three segments will help the Phoenix landlord to draft a comprehensive lease agreement.  The lease agreement is an essential item for successful property management in the phoenix area because it sets the expectations for both the landlord and the tenant.  We always suggest enforcing the lease agreement rather than making modifications once the tenant is in place. Also we suggest Phoenix landlord’s to be familiar with the AZ Landlord Tenant Act and you can obtain a copy here.  To listen to the first two segments visit us RPM.

 

 

 

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Phoenix Property Management Avondale Success!

Glenhurst, Avondale Arizona

RPM Phoenix Property Managers rented a property in Glenhurst in four days!  Glenhurst is a premium subdivision.  As a result,  Avondale is a desirable area for phoenix property managers.  It is south of Indian School, east of Dysart, north of Indian Springs and west of 107th Ave. Most of the community’s homes were developed around 2003 and construction was completed by 2005.  The homes have between three to six bedrooms on average and two to four bathrooms as a result this neighborhood is perfect for those seeking single-family homes.  Not surprisingly, this home has 4 bedrooms and 2.5 bathrooms.  We first rented this home in 2014 for $950.00 and it took seven days and that tenant was in place until 2019.  In 2019 the home rented for $1295 and took four days.  The 2019 rental price represents a 36% increase from 2019.

 

Visit Avondale for more information.

For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix
www.rpmphoenixvalley.com
602-358-8130
info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
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Phoenix Property Management Goodyear Success!

Welcome to Centerra, Goodyear Arizona!
Welcome to Centerra, Goodyear Arizona!

RPM Phoenix Property Managers just rented a property in Centerra in one day!  Centerra is a premium subdivision in Goodyear.  Goodyear is a desirable area for phoenix property managers.  It is south of Van Buren, east of Estrella, north of Yuma and west of Bullard. This neighborhood is perfect for those seeking single-family homes. The community’s homes were mostly developed around 2003, but newer construction homes were built as recently as 2005.  We first rented this four bed/three bath, single story rental home in 2011 for $950.00 and it took nine days.  Furthermore, in 2013 we saw the home rent for $950 and took 37 days.  In 2014 the home rented for $975 in 26 days.  In 2016 we were able to get $1199 in 35 days.  Final this month,2019  we were able to get $1395 in 1 day!  The 2019 rental price represents a 47% increase from 2011.

 

Visit Goodyear for more information.

For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix
www.rpmphoenixvalley.com
602-358-8130
info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
&
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Gilbert, AZ Rental Property Comparison of two zip codes; 85296 & 85234!

Real Property Management Phoenix Valley compiled a comparison of the Gilbert rental zip code 85234 and the Gilbert rental zip code of 85296 during the time periods of 2015 – 2018.  Real Property Management Phoenix Phoenix Valley utilized data from the MLS (Multiple Listing System).

The 85234 Gilbert zip code is west of Power, east of Gilbert, south of Baseline and north of Elliott.  The total population is just under 51, 000.

The 85296 zip code is west of Power, east of Gilbert, south of Elliott and north of Ray.  The total population is around 42, 500.

Real Property Management Phoenix Valley comprised the above spreadsheets which illustrate the year, zip code, number of properties that rented, average rent and average days on the market for both the 85234 and 85296 zip codes.  The 85296 Gilbert zip code saw an increase in rental prices from 2017 to 2018 of 9% whereas the 85234 zip code saw an increase of less than 7%.  Interestingly the homes in the 85296 zip code rented much faster than the 85234 zip code in 2018. 

The 85234 zip code is comprised of almost 23% renters whereas the 85296 zip code is comprised of almost 30% renters.  Both zip codes are excellent for owning investment property as average income in 85234 is approximately $98K and $104K for zip code 85296.

For more information about the zip code in which you own a rental or are looking to purchase a rental please contact us at 602-358-8130.


For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix Phoenix
www.rpmphoenixvalley.com
602-358-8130
info@rpmphoenixvalley.com 

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Real Property Management Phoenix Valley Top 5 Avondale Subdivision for Rental Properties

Real Property Management Phoenix Valley analyzed single family rental property subdivision statistics within the main neighborhoods in Avondale AZ utilizing the MLS (Multiple Listing System). We identified the top 5 rental property subdivisions in Avondale, AZ for closed rental volume during 2018.

The city of Avondale, AZ  runs east and west of the I-10 freeway from 99th Ave to Litchfield Road and is strategically located near not only the I-10 but the Loop 101 as well.
Avondale, AZ – number of closed single family rental property transactions for year to date 2018 = 442.  Top 5 subdivisions break out as follows:
 
Coldwater Springs – 60
Rancho Santa Fe – 27
Crystal Gardens – 26
Garden Lakes – 23
Glenhurst – 21
 

As opposed to the Goodyear subdivision analysis completed by Real Property Management Phoenix Valley; Avondale has a ton of neighborhoods with rentals so the number of closed rental transactions per neighborhood is smaller.

The top 5 rental property markets in Avondale represent 36% of the closed rental property transactions in Avondale, AZ for year 2018. This is in stark contrast to Goodyear and more in line with Surprise in which the top 5 neighborhoods also represented 36% of the total closed rental home volume.  The remainder was spread out among the other Avondale neighborhoods.

Here is the average rental price for the top 5 Avondale, AZ rental neighborhoods as per Real Property Management Phoenix Valley’s analysis:

 
Coldwater Springs – $1322.00
Rancho Santa Fe – $1335.00
Crystal Gardens – $1414.00
Garden Lakes – $1611.00
Glenhurst – $1427.00

 

 

Overall the Avondale rental area is an excellent area for Phoenix rental properties as illustrated by the average rent that is achieved and listed above.  Additionally, its’ close proximity to two main freeways increases the appeal.
 
For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix Valley
www.rpmphoenixvalley.com
info@rpmwvphx.com 
 
602-358-8130
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