Where Are The Triplexes and Fourplexes More Suitable For Owner Occupants in Phoenix

November 03, 2009

Amongst the ruins of the small multifamily properties a jewel sometimes appears.

A common enough issue with buying an owner occupied small multifamily property like triplex of fourplex with residential financing is the lack of choices. In Greater Phoenix the overall stock of these properties leaves much to be desired.

The requirements for an owner occupant and investor are different though there is some overlap. Of course the property still needs to make financial sense: it needs to be a return generating property because the owner needs to be rewarded for some of the trade offs made and that reward is usually cash flow and/or an exit strategy with positive consequences. In other words once the investor/occupant leaves the property the property can then be turned purely into an investment vehicle.

There is rarely a property on the market that will satisfy the needs of most owner occupied investors.

If there were, I'm sure the demand will rise as well. It's quite a common enough request from many people, but the search quickly ends when it becomes obvious the choices are limited or are simply not available when needed by the buyer: more a home like building then a simply business to house people.

What is needed.

Home like multifamily properties in the same or similar popular neighborhoods like homes, not the run down buildings, that are often, relegated to some commercial backed, ugly streets. It's tiring to see properties milked for every last cent with deferred maintenance going years if not decades back. I've seen nice multifamily properties become the catalysts for the decay of a neighborhood and this is unnecessary. There are locations where small multifamily properties are cared for and they care back.

Such locations are: North Central Phoenix, some of the historic districts, the Biltmore area or Arcadia to name a few where many of the properties are like homes, like owner occupied properties the meld well with the surrounding single family homes, they just rarely change hands.

I know quite a few people who have found these nicer properties and make them their home, or their vacation spot and they have a good investment as well.