About to Pull the Trigger - Need Sanity Check

[Andrew Martel]

Ok BP I've been looking for a few months, run into a few potential deals and lost out on them due to moving too slow.  I've finally run into one that I think I can swing and I've run the numbers... but I need a sanity check.  This is my first investment property to start my buy and hold investing strategy.  Tell me what you think.

The house is in a great little neighborhood, clean, and needs minimal repairs. the house is a 3 bed 1 bath 1090 sq ft, with a carport and is nearly turn key. Very little needs to be done to get this thing moving. I've pulled the comps and FMR for this sort of home is between 700-800. I'm about 90% certain I can pull 750 a month with this home, especially if I did a few upgrades.

Asking price is 55K, FMV is ~67K. I am going on the assumption that I can only negotiate down to 50K... I need to in order for this to work.

The banks I have spoken with will not do traditional financing under 40K so I with 25% down I would need to put some renovation money down on the loan, which is fine, to finance at 40K.  Is there another financing option I could be persuing?

Here's the breakdown I have. Please let me know if I missed something. All advice is appreciated!

The numbers work, the location is good. Is $232/month worth it? That means 4.5 years to make my money back that I invested...

Purchase	$50,000.00
Cash to Close	$12,500.00
Monthly rent	$750.00
.	Annual	Monthly
Property Tax	$1,145.00	$95.42
Ins Est	$235.00	$19.58
PM	$900.00	$75.00
Mortgage	$2,580.00	$215.00
HOA	$0.00	$0.00
Vacancy (10%)	$900.00	$75.00
Repairs (5%)	$450.00	$37.50
Total Expenses	$6,210.00	$517.50
.	.	.
Net	$2,790.00	$232.50
Cap Rate	10.74%
Cash on Cash	22.32%