1BR SFR for first rental?

[Stacy C.]

Hello, been wanting to get into either a flip or rental for a long time. Spent lots of hours listening to podcasts and reading things, etc.. and I'm finally in an action taking mood..better late than never.

Anyways came across something local.. did the math on it and its definitely not a great deal but seems like it would be something easy to manage myself, good location, ready to rent, etc.  but it's a 1 BR w/ a loft, single car garage.

W/out knowing more details, any general reasons to stay away? for my first one I would think I should be looking for something better, but I could put a measly $5k down and my cash on cash return is almost 20% if it rented for what it currently was (tenant leaving now).. only cash flowing $100 though.

Being a 1 BR it seems like if I ever want to sell it would be to an investor only. any reasons not to pursue it, or could this be something good to get my feet wet? $1200 a year isnt anything to be excited about, but I'm sure w/ some tax benefits, and the priceless experience..it could be a good thing for me?

Thanks!

[Steve Graves]

Bank some more money and find a good deal on a 3+2. $100 of cash flow isn't going to be worth your time.