Buying a rental on the other side of the country

[Account Closed]

OK, bear with me here folks.  Although I have flipped well over 500 homes since 98 and owned nearly 100 rentals - I have never done anything out of my backyard.  I'm in Portland, where the flipping is sweet right now but cash flowing rentals are hard to come by.

I have someone I met online that is selling a 2 bed, 2 bath, 1,000 square foot home on the east coast.  It's currently rented for $350 a month.  They want $14k for the home.  It zillows at 40k (I know to NEVER trust zillow - but you have to start somewhere, right?).  Property taxes are just $75 (I had no idea there were places in the country that had that low of property taxes) and the fire insurance is $350.  So my monthly insurance/taxes are $36.

The local property managers are charging 10% of gross rents or $35.  Is this a good deal?  I'd pay cash for the home - seems like I would make about $280 a month not including vacancy/repairs. Tenant pays all utilities.  I want to start buying out of state rental properties to find markets that make sense for buy and holds.

Thoughts on this particular deal or starting to buy out of state rentals in general?!?

Thanks!

[Bill Fennelly]

Where is the property located, $14k on the east coast is going to be a dump, and probably in a high crime area, may end up costing you more than $14k in legal fees...if it's to good to be true it usually is...just my opinion !