Help analyzing in Phoenix

4 Replies

Hi everyone, I hope y'all are doing well. I tried to analyze my first property today. I'm really not sure if I did it right because it seems like a really good deal (I'm not anywhere near ready to buy yet, just learning how to analyze). I'd like some feedback from those of you who invest here in the Phoenix area so that I know how off my numbers are. I live in Mesa and I tried to find rent comparisons for the area of the property (Alhambra) but there was nothing for rent there I could find. I kind of went with the general area and near what I pay for rent here. 

This property is in the Alhambra Neighborhood of Phoenix AZ. 

List price: $350,000

4 units: 3 x 2 bd/1.5ba 1 X 2bd/2ba

I figured $1100/mo for rent for the 3 1.5 baths and $1150 for the 2 bath

Total Income: $4450

I used Zillow and my assessor's website for tax info (although I have no idea what FCV and LPV are)

Tax: $95

Vacancy: $230 (5%)

Repairs: $230 (5%)

CAPEX: $230 (5%)

Property management: $450 (10%)

Mortgage: $1922 (using an FHA loan at 3.5%)

PMI: $280

Insurance: $70 (based on zillows numbers)

Total Expenses $3507

Cashflow: $4450- $3507 = $943

Down payment: $14000

Closing costs: $4000 (I definitely need help with this number)

Rehab: $10,000 (pulled this out of my butt, only 1 picture of the outside)

Total cash in: $28,000

Cashflow for the year= $11316

COC ROI= 40.4%

I'd just like a little help to figure out if I'm even in the ballpark or if I really need to make some big adjustments to my numbers. Any resources that I can use to understand some of these numbers better would also be appreciated. 

Thank you so much for your time and input, I have a while before I can take action on anything, but I want to be able to analyze a deal in my sleep by the time I get there and be confident that I did it correctly. 

There are many comps in the area. Not knowing the specific property, this is a general analysis of the area.

Alhambra ARMLS 2018 rentals

2/1.5 rented this year .88 average per square foot.

2/2 rented this year .97 average per square foot.

= 85012,= 85013,= 85015,= 85017,= 85019,= 85021,= 85051,=85012,=85013,=85015,=85051,=85017,=85019,=85021

Dwelling Type of Apartment Style/Flat, Gemini/Twin Home

Thanks, Matt, I figured I could just use the surrounding area. I'm in 85201 and I used what I'm paying for rent (2/2) to help me analyze this. 

I was going to tag you in this, but I don't know how.