Four transactions

Not testimonials. Each card carries the purchase price, the rehab, the all-in basis, the stabilised rent, the cap rate at stabilisation, the cash-on-cash and the hold period — and a split showing where the first year’s return actually came from. The quote is the smallest thing on the card, deliberately.

Transactions: 4
Doors: 15
Total all-in: $2,484,175
Mean cap at stabilisation: 5.77%

Fourplex, four 2/1 units

Alhambra, Phoenix · Fourplex · held 26 months

R. Okafor

Transaction figures for the Fourplex, four 2/1 units in Alhambra, Phoenix
Purchase	$498,000
Rehab	$62,000
All-in	$572,450
Stabilised rent / mo	$4,820
NOI / yr	$34,960
Cap rate at stabilisation	6.25%
Cash-on-cash	3.92%

Where the first-year return came from

Cash flow $6,180
Amortisation $5,240
Est. appreciation $9,800

The screen told me it was a 6.2 going in. The diligence told me the sewer lateral was cast iron. Both were worth knowing before I wired anything.
R. Okafor — Private buyer, second acquisition

Bought with one unit vacant and two on legacy rents. Rehab was unit turns plus a shared laundry, no structural work. Stabilised in month nine.

Single-family, 4/2, 1,780 sq ft

Laveen, Phoenix · BRRRR · held 19 months

Delgado Holdings

Transaction figures for the Single-family, 4/2, 1,780 sq ft in Laveen, Phoenix
Purchase	$296,000
Rehab	$48,500
All-in	$351,900
Stabilised rent / mo	$2,290
NOI / yr	$15,320
Cap rate at stabilisation	4.44%
Cash-on-cash	2.31%

Where the first-year return came from

Cash flow $1,240
Amortisation $3,980
Est. appreciation $4,600

The refinance came in eleven thousand under our model. Painful, but the model was on the page — we could see exactly which assumption had been optimistic.
Delgado Holdings — Family office, 14-door portfolio

Buy, rehab, rent, refinance, repeat. Appraised at $372,000 against a $358,000 model. Cash-out left $21,300 in the deal against a $0 plan.

Duplex, two 2/1 units

West Mesa · Duplex · held 31 months

K. Brandt

Transaction figures for the Duplex, two 2/1 units in West Mesa
Purchase	$358,000
Rehab	$14,000
All-in	$380,950
Stabilised rent / mo	$2,980
NOI / yr	$21,740
Cap rate at stabilisation	6.07%
Cash-on-cash	3.45%

Where the first-year return came from

Cash flow $2,820
Amortisation $3,560
Est. appreciation $5,200

I nearly bought a house that looked better and paid worse. Seeing the two underwritten side by side on the same assumptions was the whole decision.
K. Brandt — First investment property

House-hacked for the first fourteen months, then both units let at market. Mesa’s lower effective tax rate is worth roughly $190 a year against the Phoenix comparison.

Eight 1/1 units, 1976 vintage

Glendale Central · Small multifamily · held 14 months

Sandbar Capital

Transaction figures for the Eight 1/1 units, 1976 vintage in Glendale Central
Purchase	$1,035,000
Rehab	$118,000
All-in	$1,178,875
Stabilised rent / mo	$8,960
NOI / yr	$65,490
Cap rate at stabilisation	6.33%
Cash-on-cash	2.48%

Where the first-year return came from

Cash flow $8,280
Amortisation $11,400
Est. appreciation $14,200

Sub-metering the water was the whole business plan and it was a line item in the model on day one, not a discovery in month six.
Sandbar Capital — Syndicated, 22 limited partners

Owner-paid water on a 1976 system was the largest controllable expense. Sub-metering plus low-flow fixtures cut the annual water line by 38%.

How to read these

Three of the four returns are dominated by amortisation and estimated appreciation rather than by cash flow. That is the honest shape of a levered residential deal in a market where the mortgage constant sits above most going-in cap rates — and it is worth seeing plainly, because a plan that depends on appreciation is a different plan from one that depends on income.

The appreciation component is an estimate, carried on the submarket index. Unlike cash flow and amortisation, it is not money that arrived; it is a mark. We separate the three for that reason.

The Laveen case is included because it missed. The refinance appraised eleven thousand dollars under model and left $21,300 in a deal that was planned to leave nothing. The model was on the page, so it was possible to see exactly which assumption had been optimistic — which is the entire argument for working this way.

Demonstration site. Parcel is a fictional business created for this design template. Every listing, price, rent, market figure and case study below is illustrative sample data, not a real property or a real transaction. Photography is representative stock imagery and does not depict the addresses shown.

Not investment, tax or legal advice. All returns shown are estimates produced by a model from assumptions you can change, not offers, appraisals or guarantees. Real results differ. Consult your own licensed advisers before acting.