It is probably not the best deal to be had based on the amount of cash out of pocket, but for a first investment property, I would call it a success. 

Residential sales can be emotionally driven, while commercial is very business based.

@Robert Lindsley Couple things that come to mind based off first look: I would include CapEx @ 10-15% as well.

I invest in passive index based mutual funds.

@Dustin Palls you asked for someone with industry knowledge, I gave you advice based off of what you said in your post.

It's at THAT point that you'll be able to confirm that you bought a great "deal", but, you should already have a clue, based on whether you paid under-market and/or know how to value-add!

Based upon my research of the area around the Grove PATH so far, I think $1500-2000/mo is reasonable rent for a unit, which puts me at a cap of around $725k for a property (FHA PMI is killer…).

Don't base your decision on the "median sales price in Tempe", or what Zillow or Realtor.com is telling you. 

I would advise that you continue to educate yourself on the different avenues of REI and decide which could put you and your wife in the best position based on your goals.

I'm new to real estate investment, based in Brooklyn NY but looking to invest in my hometown of Rochester, NY.