Phoenix Arizona BRRR/HH Analysis – 1st Deal Advise (New to REI)

[Austin G.]

Greetings All,

I'm new to analyzing deals and in the learning phase of REI. I'm looking for my first deal in my current market of Phoenix, AZ metro by summer 2021 (+2 years at job). Ideally want a small MF or large SF property to BRRRR/House Hack under $350k.

Here is a property which caught my eye near work. Would y’all please take a look to see if the numbers make sense? Thank you so much in advance! (Format borrowed from @ Moriel Khaykin).

2912 E ROESER Rd Phoenix, AZ 85040

Link - https://www.redfin.com/AZ/Phoenix/2912-E-Roeser-Rd-85040/home/28143344

Asking Price - $309,000 6 Bed / 3 Bath (Tri-Plex) Built - 1984 Lot Size: 7,717 Sq. Ft.

Income

Rent/ Room - $600/month (est. average)

Rental Income - $3,000/month (Rent 5/6 bedrooms)

Total monthly income: $3,000/month

Expenses (monthly)

Property Taxes - $57 (redfin)

Insurance - (Mortgage + Homeowners) - $186 + $82 = $268

Utilities

Electric - $200

Water - $50

Sewer - $50

Garbage - $22

Gas - $60

HOA - 0

Lawn Care - $0

Vacancy - $180 - (6% rental income)

Repairs - $100

CapEx - $100

Property Management - $50 (Self)

Mortgage - $1,588 ( Principal + Interest) of [$309,000 at 3.5% and 30 year fixed]

Total Monthly Expenses: $2,675/month

Cashflow

Income - $3,000

Expenses - $2,850

Total Monthly Cashflow: $150

Cash on Cash ROI

Down Payment - $10,815 (3.5% FHA)

Closing Costs - $3,090 (1% for escrow + title company)

Repairs - $11,095

Total Investment: $25,000

Annual CoC ROI

($325 x 12)/ $25,000 = 0.78%

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FYI this was done by hand and with limited knowledge about repairs/costs. Thanks in advance.

Don G.