Understanding value vs. cash flow

[Ellen A.]

we purchased  A house $20000 below value. It seems as though we're having to put $20000 into it in order to bring it up to code and make it safe. This house cash flow is only 350 a month.

 Since we are new to this And we have learned a lot from this deal I'm trying to see if other investors think that this is a bed deal. As we do.

 I'm not sure how to look at it. Since we're putting 20000 into it and only getting 350 a month it would take 57 months to recoup the 20000 we already put in (if we didn't raise the rent).. however if you look at it from a value standpoint.  The value is there. We're in it for the long haul and plan on holding. I'm just not sure I understand the difference between adding value to a house where it is concerns cash flow.

It's in a great neighborhood with great schools. It was rented about 2 weeks after we purchased it.  The tenant plans to stay 4 years . The lease is 6 months with a 6 month renewal without raising the rent. 

In other words if we put $20,000 in it and sold it we would get the $20,000 back

Thanks for your feedback.