"In California, we're known for buying class C properties, but in Arizona we're interested in class A, B and C," Fink says. The plan is to acquire multifamily properties in good locations and then reposition them with capital improvements. "We'll spend anywhere from $6,000 to $8,000 a unit for improvements," he adds.

Fink expects the improvements, along with improved property management, will create increased rents, reduced expenses and significant added resale value. He says Bascom Arizona is looking at five-year holds and expecting an internal rate of return in the high teens. "Phoenix is very cyclical. And if you hold there long term, you'll get burned," he points out.

Bascom Arizona has three deals working to add 1,500 units to the portfolio. The class B and C complexes are being sold by private investors for about $30,000 per unit. In May, Bascom acquired its first metro property, Stonegate Village Apartments, a 234-unitcomplex in Chandler, for $18.9 million. Bascom was the successful bidder out of 55 investors attempting to buy the asset out of bankruptcy. It closed the transaction in 21 days. "We got a class A property at $83,000 a unit versus the market price of $95,000 a unit," Fink says.

Fink adds Daiutolo and Finney are the company's "local sharpshooters" and the partnership is relying on their expertise. "You've got to have local talent on the ground," he says. "They're very valuable because they know all the buyers and the properties."