Do I continue with this deal...

[Auryana Faramarzi]

Hi all - first time investor here (well, almost). My offer was accepted for a SFR in Houston (zip code 77007, near Houston Heights). I wanted to share the details with my fellow BP investors and get your opinion on whether I should move forward with the deal or not. This will been my first property purchased. I currently live in CA and this will be out of state investment property. So here are the details...

Details: 3 bedroom, 3 bath SFR listed at $365K - I got it for below asking at $355K. The seller's have also given me credit towards closing of about $5K. Property tax rate is about 2.29% (so I will be double wammied with state and property taxes).

Homeowners insurance is $183/month (includes also Flood Insurance)
Taxes $680/month 
HOA $75/month
Monthly rent ~$2600

I have run the #'s through BP "rental property calculator" and would be cash flowing $75/month (after expenses, vacancy, etc.). This is only a 1-2% CoC situation and obviously not ideal. But in this market, I'm having a hard time finding much that does cashflow.

I'm a young working professional who has been paying rent for years now and my purpose in buying this property is to build equity and get those tax breaks. But a cash flowing property is also a goal of mine. I know HTX has slow appreciation YoY so I am not counting on massive jumps like we're seeing on the West Coast. 

In addition, in this particular zip code, I'm seeing home drop in price which seems like a red flag....

Please let me know what you think of this particular situation, I appreciate all of the wealth of knowledge this community has to offer. (If I left any information out, please let me know!)