Does a Phoenix Quadruplex cash flow?
The fast answer is NO! Cash Flow is defined as
Gross Income
Vacancy
Expenses
= Net Operating Income
Debt Service (your payment)
= +/- Cash Flow
We looked at low end Quads and could not cash flow any of them at all. Looks like the Californians have totally converted our market to that of CA.
My client was desirous of moving into 1 unit and renting the other 3. Great idea. A Buyer generally must stay in their Primary Residence (if they get a loan) for at least 6 months. This client wants to buy a new Quad every 6 months until she has 20 Quads or 79 rentals. Her plan then is to sell the 10 dogs of the portfolio and pay off the 10 good units. Again, a great idea. She would need to move twice per year but so what. Maybe she leaves the furniture and rents those units as furnished. Her theory is “what am I willing to do to be a millionaire”. Love her attitude.
We had lunch with Steve Oliver of Cardinal Financial. They are a Mortgage Broker, Mortgage Bank and a Portfolio Lender. He can get her into a Quad on an FHA 3.5% down and he can fix her credit as well. The problem is, he can only do it once. Then my client would need to get a traditional 80/20 loan.
Steve Oliver
Cardinal Financial
Loan Officer
(602) 625-5995
steve.oliver@cardinalfinancial.com
My clients dream will not come to fruition in Phoenix. Our only choice is to switch Cities. More to come on that.
If you need to buy or sell a home, see us at www.5kflatfeelisting.com. We look forward to hearing from you.
Buyers get: Sellers get:
FREE Home Inspection 5k Flat Fee Listing
FREE Termite Inspection FREE Home Inspection
FREE Home Warranty FREE Termite Inspection
Best,
Geoff Nowlin, Phoenix Realto Brett Young, Cleveland Realtor
480-466-3737 (216) 703-5740
www.5kflatfeelisting.com by56083@gmail.com
nowlin.geoff@gmail.com
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