Is this a good investment to pursue?

[JO DIXIT]

Dear Experts & fellow Home Investors,

Happy Thanksgiving to you all!

I am a newbie from Seattle and have come across an apartment unit for potential investment (cash flow until flip when the market improves).

What caught my attention and interest in this property was the price, considering the location. This is the lowest price property I have found so far that matches my investment appetite (of $150k that results in positive cash flow) plus the fact that it has been listed for over 100 days now.

The numbers however do not meet the expert investment criteria of 50% rule!

This is a 1979 construction, 2 bed 1 bath home (890 SFT with washer-dryer not in the unit) on the market for over 100 days now. The apartment needs a rehab of about 5k before we rent it out.

Quick numbers for your reference-

1. Asking Sale price: $135,000

2. HOA dues for this unit: $320

3. Property tax is $950 annually.

I am making the following assumptions:

1. This unit will fetch a rent of $1100 monthly.

2. The rehab price is about $5k

3. The owner will be willing to accept an offer of $115,000.

Link for your reference here:

Appreciate your suggestions for this property and any other advice you may have for a newbie like me. So far, my focus has been on property areas where there is high demand for rent and resale. I am yet to across any property here in the Seattle area that meets the 50% rule. Am I looking at the right market?

Thanks in advance!

Jo