Some PM companies take on higher end stuff (think Cul-De-Sac neighborhoods) and some focus on the hood.

Bryan,This is one of the biggest challenges when investing in C/C+ areas, and it’s even more amplified in D-class neighborhoods.

Are you targeting any specific areas/neighborhoods like Maywood, Garfield Park, Speedway?

I have a neighborhood map of what areas I recommend investing in  

Or you'll have to do really costly renovations with proper permitting-- i.e take a 3/1 to a 4/3 to a neighborhood that seeks such size. 

Not sure your basement is illegal, maybe un-permitted ;-) House is in Chicago neighborhood.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

For a yearly lease agreement specific to Phoenix, AZ, you might consider starting with the Arizona Association of REALTORS® (AAR) or another local real estate organization.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.