Is it a good deal for an all-cash offer?

[Alex S.]

I recently found an on-market move-in ready townhouse in Phoenix AZ which doesn't have a super high cashflow (my target is 8%+) but it's close to it:

- Cash to invest: 177k (175k purchase price + 2k closing costs)

- RTP: 0.89%

- CoC: 6.43%

- Rent: 1550 (LTR)

- Expenses: $604 (Taxes, Insurance, HOA, CapEx, Vacancy, Maintenance, and PM)

- Cashflow: $946

Mortgage rates would make it to be a non-deal, but with all-cash, it can be a deal. Also, with all cash, I want to come up with a lower offer of around 160k, which will hit my target of 8% CoC.

With that, I could freeze a lot of capital and same time lose equity build-up and some of the tax benefits while getting maximum and decent cash flow from the deal. My goal is not cash flow now but with higher rates I cannot properly leverage it I think... Should I take it? Or is it better just to keep everything in an index fund and wait/make another deal?