Help with my first rental property

[Bret Treadway]

I'm pursuing my first rental property and I have questions/concerns on how to go about it. There's a property in Houston that's appraised at 121k. The seller is will At 85k. The roof will need to be replaced as well as some other repairs. I'm estimating the repair cost will be around 20k. I am approved for a loan from a credit union that will allow me to acquire the home with no money down for 80%LTV. However he loan requires me to payback the loan in 7 years with 7% interest with a potential refinance in 7 years. I don't see much profit with that option. My other option would be to get a hard money lender to loan me the money for the house and rehab costs then refinance when the roof and other minor repairs are finished.

Opinions??