What makes a leased occupied SFH a good investment property?

[Marvin S.]

Hi all. 

I am currently in discussion with a seller of a SFR that is currently and has been rented for close to 2 years @$1,100 in the Birmingham AL market. The current rent and asking price gives a gross rent yield cap rate of 16.5%, before expenses, so ideally with an all cash buy, the net after operating expenses should be a solid double digit %.

I am ready to make an offer that with the current rent would give a gross rent yield cap rate of 20.5% to wholesale to an end cash buyer.

I reached out to the seller 2 years ago before the property was leased and for all intents and purposes the cash asking price is still the same.

Would these numbers be attractive to a buy n hold or turnkey investor?

If so why?

If not why?