looking at a deal...what would you do?

[Ryan Penne]

Hi all,

 Thanks in advance for the advice. 

Quick backstory: I just moved to KY, will be here for three years, and am trying to acquire some distressed properties as a first time investor to turn into rentals before leaving. I am currently in an apartment, and looking for a house-hack opportunity initally, but came across a single family FSBO that might be worth picking up as an investment (not my residence). Here's the info, I could use your feedback...

-2 bed/2bath nicer house in a rough part of town. But on the edge of a big redevolpment iniative.

THE CONS:

-It is the nicer house on the street, which is the opposite of what we're supposed to look for.

-The price is fairly consistent with the market, not a superb deal considering the neighborhood and street.

-Not much room for forced appreciation.

THE PROS:

-The owner is motivated and there may be some room to negotiate.

-even at the current price, with conservative rent numbers, the cash on cash ROI is about 7%. Bringing in about $250/month. Which is pretty good for me.

-easily passes the 50% rule.

THE BUY?

-I'm thinking of doing a cash purchase. What would you do?