Are these good rentals?

[Colby Pool]

Hey, I’m new to investing in rentals, and I️ have found two townhomes in central Phoenix that I️ can purchase for $150k each. They are in the same complex and I️ can rent them each out for $1700 per month. The HOA is high (around $400 per month) but includes water and electricity. Also, I️ am estimating $600 in property taxes based off of previous tax years. My goal is to grow a rental portfolio, but I️ want to use as little actual out of pocket cash as possible. Does anyone have any thoughts as to whether these are good investments? Also, what are some strategic ways to put down as little cash as possible if sellers are NOT willing to carry? Any thoughts are much appreciated!

[Ryan Swan]

@Colby Pool yeah I work in RE full time! I have a few rentals in Tempe and Scottsdale. 

Yes and no. Let's say market rent is $1000 for a 2/1 townhouse in the area where tenants pay all utilities. You charge $1400 for your similar 2/1 townhouse, but that rent amount INCLUDES electricity and water. When prospective tenants are scrolling through listings, they may skip over yours because it seems priced way too high for the area. It would also be excluded from any searches they have set up based on a rent range of say $900-$1100. 

A more savvy tenant may stop and read the fine print of your listing and realize it's priced appropriately given the included utilities.