How we transformed a non performing 4-Plex in Phoenix to a Cash Register

With a keen eye for potential, we turned an overlooked 4-plex property into a high-yield investment. Here’s the blueprint of our triumph:

Initial Challenge: Acquired a property with below-market rental income of $3,500 monthly.

This deal we thought was gonna be a Subject too or a Seller Finance deal. After a few rounds of back and forth with the seller. It was determined we needed to close this as a cash deal. A DSCR Loan with the current rents to cost were not at the 1.0 -1.25 ratio. So we called in our favorite hard money lender. So we went all in.

Strategic Enhancement: After we closed escrow we proceeded to optimized leases for Section 8 tenants; with 2 rental increases and realistic market value adjustments for private tenants. Well then we hit a hiccup, with Tenant #1 who decided to move out.

Innovative Renovation: We then began remodeling Unit 1 with smart renovations costing $24,000, attracting top-tier Section 8 tenants, boosting rent to $1,850 per month.

Value Explosion: Doubled monthly income to $7,500. Elevated property value from $620K to $850K with judicious improvements and rent increases.

Dynamic Financing: Executed a seamless cash-out refinance, upgrading from a hard money loan to a sophisticated DSCR loan product after renovation and approved new rental amount in unit 1. Total time 3.5 months of hold time.

And the best part? This opportunity was waiting right on the MLS, proving that diamond-in-the-rough investments are where strategy meets expertise.

Your Path to Real Estate Success Starts Here

Imagine reaching your real estate goals with the right strategy and insights for every step. I'm eager to apply these winning tactics to your investment journey and help you unlock unparalleled growth.

In conclusion, we used the Brrr method to acquire, and almost got it seller financed.

utilized HCV voucher/Section 8 program for guaranteed income.  created a value add opportunity. and finally used a DSCR loan to refinance and create cash flow and establish a nice equity position.   Oh yeah and we finally did a cost segregation study to maximise the depreciation !      

Are you ready to craft your own success story? [Schedule your personalized consultation today]

Can’t wait to collaborate!

Check out my Section 8 page 

Real Estate Pro named Joe