Buying Cheap, TLC Homes to Rent

[Connor Graham]

Critique my plan, this is what I feel fits my situation best. 

   Here's a little background on me.. 20 years old, credit is decent but lacks time (roughly 720). I bought my 1st house a year ago with my brother (84k). I rent one room out that pays 80% of mortgage. I have a FT job and a small PT business. Work roughly 50-60 hours a week I do around 40k a year. I have about 20k to invest..

Plan is simple to me, seems to easy, and that's what scares me. Help me see this through!

I want to spend (35-65k). That gets me a (Lets be honest here..) fairly run down, fixer upper in a less desirable part of my town. But a very rentable area. 

Put out around 7-10k for down payment and closing costs. 

Then do a light remodel, fresh paint all around, remodel a bath if needed, texture ceiling, drywall, wood repair, add curb appeal etc. Spending roughly 5k, more if needed.. I do all of the work myself as that is my hobby and my father is would be able to help on anything major..

Rent for around $900-$1000. After the set aside money for future repairs, should be $250-$350 in cashflow. 

My question is, what else is there. In a perfect world is it that simple? Any warnings or concerns before I proceed to find a cheap house to rent out? I am aware of the effects from lower income renters, but I don't worry as I wont have too much tied up into this property. 

Thanks