Would you buy at 1 1/2% rule in a non appreciating market?

[Preston Quinn]

Hello guys,

I have an opportunity to buy a (what I think) fairly decent deal in a market that I could about bet on not appreciating much if any at all over the next 10 years. Here are the numbers. My question is, should I tie up my money and wait for something in a more appreciating market? Or pull the trigger? Should I use my money to leverage a loan on something more valuable and in a better market?

Purchase price $40,000. (Cash)

Tax assessed value $68,000 (normally low)

Rental income $600.00/month

Tax $651.62/yr

Insurance $450-50/yr

Water/ $40/month

Vacancy $50/month

Capex $50/month

Repairs $50/month

Roughly $300 a month in expense. $300ish cash flow.

This property is in a C neighborhood.

Please keep in mind this is my first rental. Go easy on me if I have missed some numbers. I’m thinking I could potentially brrrr this. But then cash flow goes to crap. Thoughts would be great!!

Thanks