Sedona property update

January 30th, 2007 by Kenric

This is one of those updates of something that came and went real fast.  While we were in Sedona, we saw two 4-plexes side by side that were for sale.  The owner had completely gutted and remodelled them and they looked great.  The 4-plexes were in the process of being converted into condos.  As a 4-plex they would not cashflow, but we were willing to take the negative cashflow and complete the condo conversion because the profit was in selling the units individually.

After researching the price of condos in the area and factoring in holding costs and selling costs we can up with a minimum profit we’d require to move forward.  With that number we went to the seller’s agent and discussed our numbers and verbally tossed out an offer amount.  If we were within striking distance we would sit down and put it in paper.  Unfortunately, the seller could not come close to our offer.  At his asking price, he didn’t leave much room for the next investor to profit.  If we paid full asking and sold condos at market value, we would profit only $40,000 per 4-plex.  That’s just too little profit on a $1,000,000 flip.  The seller wasn’t in that great of shape either, he actually needed full asking price to break even.  If his agent’s information was correct, the seller’s total costs were very close to his asking price minus commission.

Posted in Real Estate | 8 Comments »
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  1. 8 Comments to “Sedona property update”

  2. Did you mean, $500K/4-plex? Wow! Mine was only sold at $175K then I did the 1031 Exchange with an 8-plex that was only $245,900. But indeed, the rent is pretty low here. However, I’m very happy with the 65K I deposited to my 1031 Exchange account.:-)

    By JJT on Jan 30, 2007

  3. No, $1M per 4 plex.

    By Kenric on Jan 30, 2007

  4. Wholly nuts!!!!! $1M per 4-plex?!?!?!? I’m looking at one now that’s on the market for

    By Steve on Jan 31, 2007

  5. I guess it didn’t like my ‘less-than’ sign. My post should read “… market for less than $100k.”

    By Steve on Jan 31, 2007

  6. One’s in Sedona AZ and one somewhere in central Texas :)

    By moom on Jan 31, 2007

  7. Hi,
    I just read your comment and I would like for you to know that those two 4 plexes that you were looking at on canyon circle drive were originally built by the same builder that built ours in 1994. I own the identical building on Chaparral drive and it is on the golf course and in excellent condition and is fully rented and also can be converted to condos. If you are interested please email me at redrocks54@msn.com

    By 4 plex in Sedona on Mar 28, 2007

  8. Just happen to check the MLS, still on the market for $1M. I think he dropped his price by $100k.

    By Kenric on May 15, 2007

  9. hi
    tz37t6fuvnu8972a
    good luck

    By Wilfred Merrill on Jan 9, 2009

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