New Investor in Phoenix, AZ! - MF Investment Question

[Landon Moore]

Hey team!

My name is Landon Moore, I live in Phoenix, AZ and just getting my real estate investing going. Wanted to dive into the forums head first and see what knowledge I can get from you all. I am analyzing deals daily and came across a 4-plex MF that has been on the MLS for 22 days as of today. Below are the numbers I ran, would love to hear where I am making a wrong assessment, and maybe some I am correct! Below is the analysis I ran. The numbers I ran are from the MLS and Realtor.com. I lowered the purchase price from 299,900 to 260,000 which made the CoCROI much more realistic. The units are fully rented currently, not sure how long the leases are for and quality of tenants. If there are investors in the Phoenix area who have better knowledge of the area this is in and advise me to avoind it, please speak up. From my research and driving by, it doesn't seem too rough and a great gateway to 51 & 101 freeways. Most other MF are S-Phoenix which is a war zone.

Plan: 3.5% FHA loan to live in one of the units, once lease ends in one. Rehab all four units throughout the year and built equity up to refinance and move into the next property(s). I currently own my SFR here in Phoenix and plan on renting that out once I secure a MF. Therefore, by moving into the MF I immediately get 4 units in my first year and live marginally in the 5th until I am able to move out. Thoughts? Concerns?

Listing on Realtor.com:

https://www.realtor.com/realestateandhomes-detail/2839-E-le-Marche-Ave_Phoenix_AZ_85032_M20313-47560

[Ryan Swan]

@Landon Moore I've helped another BP member buy a quad in there before and you're right, it's definitely not a war zone. They're inexpensive 4-plexes relative to other non-hoa buildings across town, but I still find that they cash flow well. 

At quick glance, your numbers look good. I like that you include management expense, even if you may self-manage while living in one of the units. 

The live-in FHA strategy is great, but keep in mind that you must be ably to occupy one unit within (60) days after COE.