Tucson investors - is $200 a door realistic
Hey everyone. This is my first attempt at an in depth question since joining the forums. Not entirely sure I have thought of every consideration, so feel free to point out what those additional consideration are.
My goal from the outset was (and still is) to acquire an owner-occupied 2-, 3- or 4-plex (hopefully a 4) that cash flows $200 a unit. $200 a unit minimum profits has shown up in several seminars, many books and even here on BP. But beginning my search of properties I currently have the capacity to find (i.e. Realtor-represented MLS listings), everything seems far off.
From what I've calculated, what I would need to pull this off would be:
- A 4 plex for sale at $200,000 (median at best) or less with little to no repair needed, or an associated decrease in purchase price
And
- All 4 units renting for $900 a month:
$900 x 4 = $3,600 x 50% rule = $1,800 NOI - $1,000 mortgage = $800 cash flow
To me that just sounds impossible. Even 2 bedroom houses rent for $700 in Central.
Do I need to learn to love $150 a door? $100? Less?
Do I need to accumulate a a massive down payment to decrease the mortgage?
Do I need to be ready to wait 3 years for a Just-Right Goldilocks property?
Do I need to start finding distressed sellers, because MLS listings are way too expensive? (And what is the likelihood there will be a distressed Triplex owner?)
Are all these people claiming $200 a door just fudging numbers?
All commentary/suggestions welcome, but I would really like input from people who know the Tucson market.
Thanks in advance! Looking forward to this discussion.