Phoenix multifamily properties[/caption]
Property evaluations are one of the most important aspects of Phoenix multifamily property management. Part of our Phoenix multifamily property management includes our six step evaluations.
Step 1: Know your local marketing conditions by using the Freddie Mac Apartment Investment Market index found here. This index provides useful information such as property price changes, employment changes as well as information on housing permits. Step 2: Determine the unit mix meaning the number of studios, one, two and three bedroom units in the building. Then know your area so for example if your building is near a college than studio units will be desirable. However if your property is in an area with mostly young families than three bedroom units will probably be more desirable. Step 3: Know your market rental rates by completing a rental survey. With this step be sure to use rented units in your area with similar amenities. If you are only able to find vacant comparable homes through Zillow or Trulia be sure to adjust the rate by at least 15% due to their inaccuracies. Step 4: Estimate your costs by determining if you need a property manager or if you can self manage. Also, look at capital costs such as new HVAC's (especially in the Phoenix market) as well as roof replacement. Keep in mind that overall costs should be between 35-50% of gross operating income. Step 5: Calculate the CAP rate which is the net operating income divided by the current market value of the building. The current market value is what you could sell the building for today for cash. Be sure to contact a Phoenix multifamily property manager to help with this information. Step 6: Determine why the property is listed for sale. A good reason would be retirement.