Market Rate Housing that Cash Flows

[Jack Moran]

I've been looking for some bargain properties that would fit a BRRRR. I haven't found much, but have noticed a handful of properties already in pretty good condition in my market that would seem to cash flow.

I realize that I won't be able to add much value, but do I need to if it will cash flow as it is?

Example: 

   Market Price 135,000 3br 1.25bath 1500sf with nice large level yard.  

PITI = $850/mo with 20% down

  Or if I financed 100% it would be just under 1100/mo.

  This market price fits with the neighborhood and surrounding areas, so there's not likely going to be appreciation.

  Its a fairly rural area and rental inventory in this market is low,..it should rent for 1400+/mo.

Any reason to not just buy it and rent it as is?  What's the downside?,...what am I missing?

Has anyone used this approach?