New to landlording, considering my first property (IL)

[Yan B.]

Hello everyone,

I am seriously considering becoming a landlord, and recently I started looking at the "starter" properties nearby. Found a three-unit property with the asking price of $150k, property tax of about $7700 (as of 2013), with all units rented out, bringing in a total of about $2100 in monthly rent. 

Monthly income (rent minus principal, interest, and tax) on this property comes out to be about $875 (assuming 25% down on the mortgage and 4.5% interest). 

Gross annual yield comes out to about 17% (annual income from rent divided by purchase price, assuming I buy it for the asking price).

I drove by this property though have not seen it on the inside. It looks decent, not great but not run-down either, matching its surroundings (low-rise apartment buildings). Also, local PD is literally across the street, so crime situation is probably in check (I have not yet looked at the local crime reports). The town itself is growing, albeit much slower than before the bubble burst. It has brand=new subdivisions, and decent-sized lake, an entertainment district nearby, and the "older" area (where this property is located).

My questions are:

1. What other numbers do I need to look at?

2. What do I need to look for in this property?

Thanks in advance for any and all advise!