Thoughts on a 4 bedroom in Tempe

[Ryan Smith]

I have this property under contract, thoughts on the deal would be appreciated. I have attached my numbers on cash flow below. There is a 5th bedroom but I would be staying in this room. There is also a pool, I didn't account for this in the expenses, I'm assuming it is around $50/month. Should I go through with this deal? It is in a college town and I the rents  in the area range from 1600-2500 for similar houses. Some with pools some without. I will also be spending 10k on rehab up front so initially I will be putting down about 33k.

It won't let me post my link so the deal facts are,

2200/ month in rental income

$2,090 after 5% vacancy

Monthly expenses(PM,Rep. maint, replcmnts, reserves) $260

Purchase price $220k

Loan amount for 203K

Acuisition costs fees $1,349-2000

30 year mortgage FHA financing with 10% down. total monthly payments of $1,249 and then going to refinance in a year.

Total Cash flow before taxes monthly: $580

[Ryan Swan]

I'm a landlord in Tempe and Scottsdale, so I'll give you some honest feedback. 

• What are the rough cross streets in Tempe? Rent seems a big high unless it's quite close to campus.
• Definitely get a pool care company (unless you will be doing it all yourself living on site). Plan for +$100/month for a good service. 
• Who is paying for all utilities? Landscaping?
• Vacancy % might be a bit low unless the property is super close to campus and highly desirable. 
• Set aside at least 6 months total expenses before buying (PITI, pool, landscaping, utilities, upkeep, etc). 
• Technically you are not allowed to rent to more than 3 unrelated people in Tempe. I'm not sure how/when it's enforced, but I tend to avoid it when possible. I know some landlords will rent to 4+ people, but only put 3 of them on the lease...sounds like a headache waiting to happen if you have to evict.