Arizona market is too much expensive

[Sarah Latif]

I’m in Tucson and the market here is chock full of houses for sale..but they’re all priced about 20% over their value. And rent isn’t in line with value. For example:

Multi family unit with three units renting for $600 each. Property is 2000sqft and has never been renovated. The owner is selling for 285k.

To be more realistic I plugged in a sale price of $225k. Doing a cash flow analysis mortgage is $1200 and after taxes, improvements, water, turnover and repairs we’re left with almost nothing. Can someone explain what’s going on in Tucson? Or am I looking in the wrong place?