The city of Phoenix is centrally located in beautiful Arizona. The community is thriving and growing, has a stable economy and plenty of real estate investment opportunities. With over 300 days a year of sunshine, the area attracts many newcomers who want to avoid the cold and want to feel like they’re on vacation all the time. There’s so much to do and see in Phoenix. Owning a Phoenix triplex is an excellent investment for those looking to start or add to their portfolio.
Why buy a Phoenix Triplex?
Choosing to buy a Phoenix triplex is a big decision, and like any investment, it can be an excellent one, or it can be a risky one. The best part about purchasing a MULTIfamily property is that you can live in one of the units and rent out the other two, turning a profit and living for free or close to it. It’s an excellent investment as a first property and can be a great way to start your journey as a landlord. While there are no guarantees in real estate investing, purchasing a great triplex is typically an excellent investment, as long as there aren’t significant problems with the property. It also allows you to simultaneously only purchase one investment and allows for some diversification among tenants in separate units.
Learn about real estate investing.
When it comes to preparing yourself for purchasing a Phoenix triplex, you will want to do your research, especially if you’re a first-time investor. Using online resources, like audiobooks, podcasts, and websites based around real estate investing or even MULTIfamily home investing. You’ll likely find plenty of experts who have proven strategies to make real estate investing successful. Absorb all the information you can and then speak to your realtor about your plans. You can also speak to a financial advisor as well.
Apply for mortgage pre-approval.
When you decide you definitely want to become a real estate investor, you’ll want to find a realtor, which is the next step and get pre-approved for a mortgage. It’s essential to have your finances sorted right away because you’ll want to shop within your budget and what you’ll get approved for.
Find your realtor.
Finding a great realtor can take a bit of time, but it’s worth the wait if you’re patient and diligent. There are plenty of realtors in the Phoenix area, and you’ll want to find someone who is the right fit for the job. You can do your research by checking out reviews, asking friends or family for a referral, or start setting up meetings with realtors that you’ve heard of around the city. You will want to find someone who is eager to help you, provides excellent customer service, and someone who you get along with. Finding an expert who knows all about Phoenix triplexes will serve you well throughout the homebuying process. They should also be familiar with first-time buyers.
Clearly indicate your needs and wants.
When you’ve found your ideal realtor, you will want to set the stage for what you’re looking for in your future Phoenix triplex. They want to know precisely what you want in a property, so they can set up showings and find you a home. You will need to communicate all the features you must have and the ones you can live without. You should already know your budget after visiting the mortgage broker, so you’ll have the maximum budget in mind. You and your realtor should determine what neighborhoods you want to purchase and the condition of the property you’d like to buy. Many real estate investors are looking for properties to buy at a low price, fix up, and rent for a decent amount. You can also be on the hunt for move-in-ready properties. Regardless of your preferences, they need to be clearly outlined for your realtor.
Now that you and your realtor are on the same page, you can begin searching for your Phoenix triplex. You and your realtor can scour the listings for homes you like, and they will likely send you plenty to review, and you can indicate which ones you’d like to see in person. You can also check out free real estate websites, but they’re not always accurate. Your realtor may not catch all the potential properties you may like so that you can keep an eye on the current listings as well.
Analyze potential deals.
Now that you’ve seen a few properties in Phoenix, you can try to determine what you could get for rent on your two or three units, depending on if you choose to live in one. Based on the location, condition of the units and comparing them to similar units in the city, you can estimate what you could charge for rent and whether the investment is worth it.
Time to make an offer.
If you’ve found a Phoenix triplex that meets your needs and wants and works out to be a great deal, you can put in an offer. There are three ways that can go. Your offer will either be accepted, rejected or countered. It will most likely be countered, and the negotiating will ensue. If you can agree, your offer will be accepted, and you’re one step closer to homeownership. If not, you can pull out, and you’ll be back to your home search.
Hire a professional inspector.
Now that you’ve agreed to the terms with the seller, you’re in mutual acceptance. You will want to do your due diligence and inspect the property thoroughly to ensure you’re not buying something with significant issues. You’ll need a passed inspection for your mortgage lender, so hiring a professional to come and take a look is necessary. An inspection will likely cost you around $500. If there are significant issues with the triplex, you can choose to back out. If the issues are fixable, you can use them as leverage to get a better price from the seller or have them fix them before you take possession.
Rent out your units.
Whether you’re renting out two or three units in your triplex, you’re now a landlord. You can hire a property manager if you prefer to be hands-off, otherwise, this will be a bit of a learning curve, but you’ll gain experience and keep going.