Buying my second rental property - Analysis

[John Horner]

I had my offer accepted on a 3/1 in the Columbus Area. The area is working class with little crime. The property is right across the street from a brand new elementary school, which I see as a plus.

My offer was accepted at $34k, it needs $1500 in flooring and paint to make it very nice. The rental market shows $850-$950 for a 3 bed, but being on the smaller end I am only expecting $800 in rent for this one.

Cash flow will be near $300/month after PITI and 25% put away for repair, maintenance, management, vacancy and eviction.

My reservations are:

-Right next door is a vacant property, just ugly.

-There is almost no storage, lacks garage and basement

-Sq ft is on the smaller end of the neighborhood

-Looks nicer then all comps, new trim, laminate flooring, SS appliances, remodeled bathroom with tile.

How much will the negative factors effect the rental rate? (no storage and next to vacant property).