Looking at my First Deal am I Screwing Up?

[Brad Carrier]

I'm going to look at my first possible deal this week. I've got a veteran agent that I've known for a long time. He did a lot of PM work though the downturn and knows this rental market really well. He suggested a small house two blocks from a hospital that's in the middle of expanding. It's a C+/B- neighborhood near a lot of less optimal areas.

The house is a 3 bed 1 bath single family. It's only 775 sq foot on a city lot. It's listed for $34,000. It's all 1980's on the inside and I'm estimating $20,000 for rehab to do new floors, windows and a kitchen. I'll do the work myself aside from anything I need inspections on. Comps are around the mid 70s but the area has a lot of flux based on neighborhood so I'm not 100%.

I've got the cash to do it as a flip or a BRRRR. It should rent for $550 and hopefully with the new medical jobs coming in I'll be able to attract a great tenant. What am I missing? I feel like I should know 100 more books worth of stuff before putting in an offer but this area has been going up in value for years and I want to try my first RE project.