Good equity but no cash flow

[Gentry Redmond]

What are your feelings toward properties with good instant equity but poor cash flow?

Recently I found a foreclosed single-family property tax assessed for 183k on the market for 149k. I submitted an offer at 144k and surprisingly it was accepted. My issue is that there is something I must be missing. The property was built in 2014 and is a 4BR/2 Bath, great location (large military town) in great condition.

Average rents are roughly 1350. Which is less than the 1% rule, therefore it’ won’t cash flow. After running the numbers it seems I will be about -300 after taxes, insurance, property management, vacancy, repairs, and capex are accounted for.

This would be my first property and I would be getting into the real estate game using a VA loan. My play would be to live in this property while I continue to work in the area, then sell once I move in a couple years. If it doesn't sell at the tax assessed price, I risk holding on a property that I'm losing money on each month.

Should I close on this deal due to the equity? Or should I stick to my schooling and continue searching for a property that will cash flow?