Deal Analysis 10 Units Detached

[Phil Baker]

Hi - I am a new investor to multifamily housing.

Looking at this purchase in AZ. Would appreciate all opinions.

Here are the numbers (please let me know if I am overlooking anything). 

1 Acre. Ten 700 sqft detached cottages with attached parking.

price $650K.

Rehab costs $250k.

Total $900k

Current rent $650. After rehab $850 (entry level rent)

90% occupancy (area average 5%) = $91,800

8% management fee = $7,480

Property tax $4,800

Property Insurance $2500

Water $4,800

Gardening $2400

Trash $2,400

Maintenance/repairs $6,000

$63,680 Yearly net on $900,000 (6.82%)

Appraisal after rehab 1.1M