Newbie at Rental potential

[Vicky Luu]

Hello everyone,

I am new to real estate. I got hooked as I have seen the amazing things real estate investment has helped people and I want to be apart of it.

I currently have an situation that I feel is a great opportunity and was hoping to pick some of your brains who has more experience.

My step Son and his 2 friends are currently renting. Since I am a relator and have access to mls. I am thinking of purchasing a property and turning the property into an rental property and renting it out to them. I would find one based that would fit their “needs” to and extent.

I could find a property in Phx for 150k and put 20% down and my monthly payment would be approximately $600. If they are already paying$ 600 a piece for their current rental, I figured $500-550 would be fair on my end. It could potentially be a cash flow of 900 + a month give or take ( I am not sure what other fees to account for). My only exit strategy is if they decide to leave then to sell the property.

I want to know what everyone thought is? Is it as black and white and I am thinking? Too risky? Again this would be my very first rental property.

Any direction would be greatly appreciated .