Mulit-Family Phoenix area... a couple of questions

[Joe W.]

I'm looking to purchase my first 4-unit property using FHA financing in the Phoenix area and I had a couple questions/comments that I would love some feedback on if anyone has any insight.

1) Is now a BAD time for me to buy? --- In my research (keep in mind I'm a novice) things seem to be cycling back around. I've seen a number of 4-unit properties come on the market that were purchased in say 2004/2005 when the prices were at the peak and it seems like prices have gotten back up to that point and some of these investors are just trying to get out and/or turn a small profit. Some of the comments I've read from the Phoenix area investors seem to support the idea that prices are crazy and that makes me wonder if we're headed for a decline.

2) The scary thing about real estate for someone like myself who is just getting started is that you're on the hook for hundreds of thousands of dollars when you buy a property and I'd hate to buy a property and then see the value drop by $50k-$100k or more. The saving grace (maybe?) is that in the multi-unit 'game' even if the property drops in value as long as it cash flows you're making money and eventually the value should come back.

3) The hardest part about buying a 4-plex using FHA financing is the "self-sufficiency" rule. This means that 75% of the rents (using 25% vacancy factor) need to cover 100% of the mortgage (PITI+MI+HOA (if applicable) payment. Is this a good criteria for me to adopt when evaluating 3-4 unit properties going forward? It's hard to find many properties in decent areas that can actually meet this criteria (at least in the research I've done).

4) I'm looking for a good book on multi-unit properties to read. Suggestions? 

Thanks, Joe