Buy and Hold Help with Analysis

[Jeff Ihnen]

I need help and advice on my current property of interest. I am very conservative in my RE investing for the time being and do not have much loan/risk tolerance.  With That being said I just want to focus on buying 1 Rental to start out with, Learn all I can, Increase the cash flow as much as possible, all the while saving money and preparing for my next deal.  My goal is to pay off this first rental completely before i buy another one and then do the same for that one.  I know this is a lot slower pace to great wealth but at least for the time being I do not want much debt or properties to deal with.  With that being said here is the current property i am interested in....

1/2 of a duplex for sale.  The property has a 2 car attached garage, 3 beds, 2baths 1149sqft and is in a great/desirable location.  It was originally listed at 127,000.  Now the property is listed for 122,000 and has been on the market for 3 months.  I believe it is due for another price cut very shortly.  I believe the property is over priced and needs all new flooring, updated both bathrooms and kitchen.  All in 15k-20k in repairs needed.  Rent for this property would be between 1,000-1,200 a month.

CapEx 200, Repairs 50, Vacancy 50, Property management 100, property tax 180, Insurance 80, Trash pick up 15-----All expenses 675/month-------$405 Mortgage payment (If i get the home for 100k w 20k d.p.) For a grand total of 1080/month in expenses. (i would manage myself for 100 less a month but wanted to include it).

I Want to make this deal worth it because while you cant bank on appreciation, this property would at least have the opportunity for that.  It is in a good area, that will hopefully attract better tenants with lower turnover and headaches.  This seems like an awful deal but i want to make it work. I wanted to originally offer 90k for the property but didn't want to offer to low and offend the buyers and not make them want to work with me.  With a top dollar i would be willing to go between 100-105k.

I was considering refinancing my current home and pulling the cash out of it to put in the deal.  Depending on what it appraises for i assume i could come away with 30k-45k.  With my savings combined with this i could get very close to paying all cash for property.

IDK lots of thoughts here. My Goal is to pay off property ASAP, Assume 50% rule and therefore cash flow 500-600 a month ASAP once property is paid off.