Seeking advice on my first deal (Single Family Rental)

[Markus Samuel]

I’ve found a “deal” but I’m having trouble understanding if this is a good fit for me. I’d love to hear some perspectives from more experienced and local investors on what you think about the numbers below:

$130k for 3bd 1ba for a single family house:
- Reno Budget: 42k
- Projected Rent: $1400

Pros:

1. 1. Currently tenanted 
2. 2. Appraisal came ~10 higher than PP
3. 3. Potential for ~7.5% cap rate

Cons:

1. 1. Long distance investment (will be using property manager)
2. 2. The house needs heavy renovations
3. 3. Located in HornLake, MS – I'm a bit concerned about declining population and overall economic drivers