Cash flow close to nothing, buy and hold

[Mica Moore]

I found a sfh for sale 3/2/2 1250 SF, 40 year old home in decent shape. Its only $140K. Is this a good deal for buy and hold rental?

Price $140K ( its basically rent ready, but may need a little work to get rented - up to $5K budgeted to turn).

Market rent: $1700 ( much more than 1% rule!!)

Expenses: $1200 mortgage (taxes/insurance included) ( 20% down which is $28K, $112 financed at 6.5%), $170 PM fee, $170 cap-ex reserve.  Total exps $1540, so only $160 cash flow. 

Its still tempting because purchase price is so low, but so is cash flow. Are there any benefits to owning a low or no cash flow rental property?

[Andrew Bang]

Yes, there are four benefits to owning a rental.  Cash flow, equity, appreciation, and depreciation.   Even without Cash flow, your renter will be paying down your mortgage each month increasing your equity.   The market will appreciate over time, so your property will increase in value.   And you'll get the tax breaks of depreciation each year.  So win,win,win.