Evaluating a rental property as a good investment
Let me know if this sounds like a good investment:
$1000000
5800sf building
12 units (10 units=410sf, 2 units=710sf)
410sf rent for $645/mo
710sf rent for $990/mo
4 parking spots
Central Phoenix
Taxes are $3500/year
Tenants pay electric
Water sewer garbage landlord pays
Updated one year ago ($25000 per unit according to seller)
Looks modern with nice upgrades according to the pics
Gated with key card access
How would I know if this is good or not. I used the BP calculator and assuming 30% down that's about 7% cash on cash roi. Basically I'd have about $1500/mo in cash flow after all expenses are paid.
It's hard to figure out the expenses. I think I was conservative but I'm not sure.