Short term rental's cash flow is not great, should I walk from the purchase agreement

[Emily Poerio]

I am new to investing and after a few deals that had multiple other offers that I didn't win out; I did execute a purchase agreement last weekend but doing more analysis on the property and potential rates being 7.5%, appears to be very tight to limited cash flow. I am getting into investing for a few reasons: flexibility, build diversity in investments and tax benefits. The location is great on this property (2 miles to the Island / 5 mile to Dollywood), no HOA and sq ft ~ 335 (2bd / 2.5 ba) but getting very nervous as will be first deal and would love some input here or mentor input as continue down the path of investing and learning.

Thanks in advance!!