Help Me Analyze This Deal

[Matthew Free]

I am currently looking to buy the following deal and would like help analyzing. The cash flow is minimum but in this current market, this may be the norm for right now? What I like about the deal is that I am using a very experienced friend who wholesales and has a property manager, bank, etc. in place to make the entire process very turnkey. The home is a 3 bed/1 bath sfh and just finished remodeling including new roof and hot water heater. 

Price: 105,500

Rent: 1050

20% down: 21,200

20 year loan 3/3 ARM estimated PITI at prime (7.5): 814

Property Manager %: 8%

If I include 5% for repairs, 5% Cap X, and 5% for vacancy, the property has a negative cash flow. The current rent is lower for the area in order to get someone in immediately, which a renter is already set to be in the property before closing. So, if I take away the 5% for vacancy, figuring that it will fill quickly at 1050 and also cut cap x from 5% to 2% given the recent updates, I see a cash flow of 78 dollars after PITI, 8% for PM, 5% for repairs, and 2% for Cap X. This leaves me with a cash on cash of 4.4%. Help me understand if this is normal for where the economy is currently at or if this deal is a no go, how can the cash on cash be so low when I am meeting the 1% rule. I understand it is because of the high interest rates and 20 year loan. Given the high interest rates across the board, is that just what I should expect in the current economy of a lower cash on cash or is this just not a good deal?

Should I hold off on the deal? 

Is the low cash flow something to stomach in order to focus on starting the timer on the appreciation of this house? This would be my second deal and I want to get moving. My first deal was a year ago and met all of the metrics and was a total home run. Is this a base hit in order to get more under my belt and keep moving or is this just not a good deal. Please help me understand.

Should I speak with another banker to look into a 30 year loan to improve the cash flow?

Should I put more money down to improve the cash flow? Even when I put 30% or 40% down the cash flow improves, but the cash on cash still stays around 4.5%

Thanks in advance.