Initial bad cash flow - to buy or not to buy?

[Ian Gilligan]

Hi all, 

I have a verbal accepted offer on a house for $48k, with a long term tenant since 2008 paying $625 in rent (subsidized by County). The cash flow is bad at $75 on a 30 yr. But, it's a big 3/2 in a decent area with comps 80k and above. Market rent is around $1,200, and I plan to hold it long term.

With potential for buying at a good equity position and better rent in the future, thoughts on buying or not? What would you do?

Thanks guys and hope everyone is staying healthy.