Evaluating a rental property as a good investment

[Derrick U.]

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.