deal or no deal? phoenix area multi

[Chris Mcalister]

so being new to REI I wanted to get a few eyes on my 1st deal and see if I could get the opinions of a few people here on BP.

asking price 249k, 4 unit mulit. 3 2 bed one bath, and a 3 bed 2 bath SFH with a pool on the same property. The 2 bed units are rented for $600 each, and the SFH is rented for $950. owner pays water and trash that averages $250 a month. Property tax is $1900. The property was built in 1971 and looks to be in good repair with central a/c. The property is located in Glendale, AZ.

I plan to use a buy and hold strategy and use the cash flow for capital for my next deal.

[RJ Cox]

@Chris Mcalister, the approx 12.9% yield looks attractive if the income and expenses are reliable. In due diligence, you should scrutinize the rental history on each tenant and the leases, plus take a magnifying glass to the expenses and potential areas of deferred maintenance. That pool can be a big hit, financially, if it has not been taken care of. 

Likewise, if you decide to proceed, connect with some local agents and PMs and ask them about potential rents in that area, and for that specific property. Another set of eyes helps, plus you may need them if you need to lease a vacant unit quickly.