deal or no deal? phoenix area multi

[Chris Mcalister]

so here is my 1st deal, please let me know your thoughts.

4 unit multi, 3, 2 bedroom 1 bath apartments that currently rent for $600, and a detached 3 bed 2 bath SFH that is rented for $985.

There is coin op laundry on grounds and a swimming pool. The taxes are $1900 a yr. Owner pays water and trash that averages $ 250 a month. The MLS#5259536

I'm currently under contract for the property and want to make sure that I'm not making a mistakes before it's too late. Any advice would be helpful.

thanks in advance for your responses.

[Account Closed]

Well, I can't figure out how to get a good shot of it posted.  What I will say is that from what I've read, you want to include vacancy, repairs, and capital expenses into your operating expenses.  At what rates depends on your specific situation.  I calculated them at 10% of gross rental income for each one.  That may be high, but even if I drop those costs to 5% each, I still only show a monthly cash flow of $48.  That's obviously better than the loss at 10%, but those are numbers you will have to come up with.  I like being very conservative when I'm unsure of the actual or exact numbers.  And I would assume pool maintenance isn't cheap. 

Not sure of the strategy, but maybe a larger down payment would give you more equity and less of a monthly payment which would help with cash flow if that's what you're looking for. 

I'm not giving advice, just wanted to attempt to run the numbers and see what I came up with in relation to others.  Sorry if I just caused more confusion.