Need help deciding whether or not to buy a property

[Wade G.]

A turn key deal fell into my lap a couple of days ago.  I seem to make poor decisions in life and no longer trust my decision making abilities so I would appreciate any feedback.  Ten years ago I would have jumped on it in a heartbeat but just don't have the same confidence I once did.  House is worth 135k and the lady wants 110k for it.  Other than a few hundred dollars worth of sheet rock work to be done in the garage it is turn key and ready to rent.  Its a standard 3/2/2, 1600 square feet, brick home.  Roof replaced couple of years ago, no foundation issues, no plumbing issues, HVAC 10 years old, solid neighborhood.  It's not a home run but I really have no interest in doing complete gut jobs on houses anymore.  Solid numbers as follows:

Rent - $1,300 maybe $1,400

Down payment - $22,000 plus appraisal and a few hundred more for sheetrock, hoping seller will pay most or all of closing costs, if not this could be a little more

taxes - $3,500 a year

insurance  - $700 year

HOA - $120 year

Flood insurance - $483 year

The rub for me is the 20% down payment. I have it liquid in the bank but it would deplete my reserve funds (which is all my liquid money) to basically zero. In order to qualify for the loan I would have to have around 23k in reserves...plus use my current funds for the down payment. So I really need close to 50K to buy the property. According to the loan officer I can get a line of credit or even a personal loan for about 20k, plus qualify some small funds in an IRA and that would suffice for the reserves. So that is the hang up. I don't like not having reserves and doing this deal would make life very risky for a few months. I can replenish my reserves at a rate of about 2k a month so I would not have the line of credit open very long. I guess I just envision the worst and don't trust life not to knock the holly heck out of me financially while I am at my weakest. Any feedback of any kind is appreciated.