Just Looked At My First Property. What Next?

[Jason Greenway]

Today I looked at my first potential 'buy-and-hold' rental property. I wanted to run the numbers and what stage I am at now, and to look for help as to what I should do next, or what I am missing in the equation, or heck, on whether or not the deal looks like it would make sense.

The house itself is a 2 bedroom/1 bathroom, ~980 sq ft. SFH in a middle class neighborhood in the northern suburbs of Detroit. The ARV on similar houses in the area are between $45,000-$50,000 per year. This particular house they are asking $32,000, but it has been on the market for a little bit, and there may be room for negotiating. The house needs some repairs (new garage door, some paint, kitchen appliances, some carpeting in the two bedrooms) which I would estimate at approximately $5,000 (on the high end?)

Also, I did get to look at the inside (and took some pictures, PM me if you would like to see them). So at this point I have been inside and looked around.

Rents in the area range from $750-$800 per month, and the financing I am working on is at 4% annually (still negotiating duration, which could be a deal breaker) with a private lender who would pay the entire cost (purchase price+renovations). I am planning on offering in the range of $27,500 and top out at $30,000 for a top end top out at around $37,000.

Taxes in the area are about $1,400 a year, and insurance would be about $700 a year (does that insurance cost even sound right? Seems low, but thats what Ive heard. Also, what kind of insurance should I be shopping for with a rental? Homeowners?)

What should I do next? Is this even a good deal? HELP!!