Would you do this Subject To Deal?

[Chukwudi Motanya]

I'm looking at a subject to deal and trying to see if its a deal I should explore in full. I am a buy and hold investor and I am trying to build up my portfolio.

The deal has roughly $160,000 of outstanding debt but mortgage payments for 2019 are around $850. Market value for the house is around $170,000 so the equity in the house is very slim. House is in good condition and 2000's build. 

Market Rent would be around $1,300. Only needs paint to bring it to rent condition.With back payments and finder fee I would be in 15k on the entry. Cash reserves for me after the deal would be around ~20k.

Would you do this deal? What risks should I be thinking about? Curious on your thoughts 

[Alan Grobmeier]

@Chukwudi Motanya, if it is an up and coming area where I know I can increase rents 3-5%+ every year, yes.  

Otherwise, 'maybe'.  I'd consider selling via lease/option.  That way I don't have to mess with maintenance & still get some money per month & cash reserves in case it went south.