The Life of a Phoenix Fourplex Over 31 years
Posted by Artur Ciesielski on Tuesday, January 17th, 2012 at 9:54am.I was looking at comparables for a property and came across a fourplex I purchased in 2000 and sold in 2001. This was a repositioning strategy project. That means it was a mis-managed property with bad customers and low for the market rents. It was easier to do these back then.
This property has had an interesting history. It was built in 1981 before the 1980's real estate boom in Arizona and the year we moved here from Austria.
- Built in 1981 - not sure of the sale price.
- 1988: Sold for $175,000
- 1991: Went back to the bank in a foreclosure sale for $73,000
- 1992: Purchased for $95,000 from the bank.
- 2000: Purchased by me for $169,000 - some fix up, new tenants, higher rents.
- 2001: Sold by me for $245,000 - good cap rate. 1031 into something bigger.
- 2004: Sold for $286,000 - still good return for buyer.
- 2005: Sold for $336,000 - crazy.
- 2006: Sold for $440,000 - crazy.
- 2011: Purchased for $118,000 as a short sale.
- 2012: Could probably be sold for $150,000-$200,000
Written by: Artur Ciesielski | tel. 602.492.8004 | e-mail: artur@inphoenix.com
Artur is a Realtor and partner with inPhoenix Realty Group of HomeSmart Elite Group and imStudio and an aspiring flaneur, in the style of Nassim Nicholas Taleb's essay on "why I walk" - not the Canadian meaning. "Some of my best experiences and memories are from walking cities, ignoring warnings of bad and good." Currently he's in Phoenix or elsewhere when time allows, which is rarely, but that is going to change. You can find him running up miles on his car listening to NPR, cycling the urban Phoenix, in the office on Central or working at one of the many coffee bars in Urban Phoenix.
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You make a valid point. I see these homes on a regular basis as I am performing Phoenix home inspections.
One issue is many of them are not maintained so someone can pick them up, put a couple grand into repairs and then sell it.
However I also noticed the ROC is going after flippers that are not using licensed contractors.
You have a nice blog, I will be back.
Posted on Wednesday, January 18th, 2012 at 7:25pm.