Looking at a possible first property wanting some advice

[Ryan Dossey]

I have a possible lead on a first investment property. My goal from the strategies I have been learning and studying is to build a cash flow portfolio that can eventually be sold as a whole.

The property is in a quiet area but definitely urban. I've drove the streets and it appears to be a good neighborhood. It is a 1bd 1bth with an unfinished basement, a room that was added on, a kitchen and a living room.

Comps in the area rent at $595.00

The home should appraise for around 24k.

It is owned out right. "Partner" of mine met the home owner and passed her my way.

IF I can get the property for around 12k that should get me instant equity (make your profit when you buy) and a mortgage (15 year) of around $117.00 a month including taxes/insurance.

Using the 50% "rule". The cashflow on the property should be right @ $181.00 a month.

It also passes the 2% "rule".

My exit strategy is either portfolio or try to get a lease option tenant. As a first purchase the ROI vs the risk is appealing. My concerns are that it's only a 1bd and that may make it hard to sell 5 years down the road as well as it being close to a rougher area. Obviously section 8 would always be an option with this property as well.

Thoughts of the BP community are greatly appreciated.