Potential Deal in my old neighborhood

[Fernando Landeros]

Hello everyone, I just wanted to ask for some help on this potential deal. There is a home by my neighborhood that is reduced in price. It seems to me that it may be under priced by 10-15k. Needs some touch ups here and there but not much. It can earn me up to $1100.00 in rental gross income. But after all expenses it would only cash flow around $50-$100 a month. But I could have some instant equity with that. But I don't really like this idea. I could possibly rent it out to industrial workers for a premium but there will be more turnover unless I get some people in there for at least a 6 month least. The premium would be an extra $500. In rent a month. I really don't think I want to go this route.

The second option is to owner finance the home. The home is listed forb$87,000 but I would like to buy it for $85,000. I believe with closing cost,carpet, paint, and down payment it would end up costing me around 23k to purchase this property. I would then in turn owner finance it to someone that has at minimum 17k down.  My mortgage on the home will be $340.00. I would owner finance it for 15 years at 9% for 15 years. If they pay taxes and insurance I should be cash flowing at least $400.00 a month. I will get my original investment back in a year and two months as well. 

What does this deal look like to you seasoned investors? Am I overlooking something or does this seem possible to you. Thanks for reading and I look forward to hearing from you all.