Buying house with a possible break even or negative CF

[Jayme Jahns]

Hello, I am looking at one of the last options in my price range of a duplex in Auburn, WA. List price is 235,000. But rents are only 1390 a month. We are shooting for offering 215 and counting on raising rents to at least 1490 (one renter is M2M, other is term so I can't until term is up.)

Expenses

Prop tax 3171 annual

Insurance 400

Maintenance 10%

Vacancy 5%

Loan payment 871/mo

I'm getting nervous because by some calculations I will have a small positive cash flow of 20 to 100 but if I add anything else like utilities cost or if repairs are more than 10%, I end up in the red monthly. 

This will be my first rental, but I will be doing the property managing too. Mainly because I could not afford a property manager with such a  razor thin profit margin but also because I stay home with my 1 year old and want to help with income in some way.

Our real estate agent has brought up the point that we will be gaining equity. Also that we may be priced out of the market soon. Which looks very possible.

Any advice appreciated. 

I'm trying to schedule with a financial advisor at my bank now