Please Evaluate this deal....

[Brandon R]

900 Sq.Ft. 3/1 on slab with 1.5 car garage in prime school district. Asking 24,900, owner purchased for 15,000 1 year ago. No major improvements. Home is in average condition/rentable. Mls indicates owner needs to sell. I would pay no more than 20,000. (if that is a safe purchase price) The home would be worth around 35,000 if it is updated. Not much maybe 5,000 high end.
House currently rented for 400 per month.
Taxes 60.00 per month
Insurance 20.00 per month
I am required to put 20% down and my bank charges me 7% over 20 years.
Any suggestions would be appreciated. After looking and looking this seems to be the best property at the moment.
Thanks....
Brandon