First Deal - Pulling the trigger too soon?

[Tim Miller]

I have been considering finding my first property to rent long term (buy and hold).

I haven't spent long looking, however, I feel like I found a deal that fits just about every need I was wanting. My fear is that I am jumping the gun and lunging at the first good deal that appears....Also its odd to me that I could find something that fits my criteria so quickly, most people I have spoken to say that it could take months of searching to really find what you need....My second fear is that I just happened to stumble upon "my deal" of this year perhaps and if I don't act then i will regret it when I cannot find a comparable deal later....

Here are the details:

Chattanooga, TN - Decent market

The home is located in a popular and growing residential part of town, easy access to grocery (2 within 5 miles). Good schools and low crime rates. The home is located directly off of one of the most driven roads in the city and is passed by thousands of cars per day (which I look at as good for finding a renter as a sign in the yard should cover my "marketing" costs). I also see this as a negative due to the fact that it can be kind of noisy during rush hour.

The home was built in 1960 on a quarter acre. limited grass on the property but lots of trees that need some major cuts IMMEDIATELY, limbs just above power lines...If I bought this home I would have to have the tree cutting service already lined up and working the moment I signed the papers which I am ok with so that doesn't bother me.

The details that match my desired list - based upon what knowledge I have gained from bigger pockets.com so far...

2 bedroom - less people to mess up the place, 1 bathroom - less repair costs, under 1,000 sq ft - not too big and not too small, good location, priced right - listed at right about $60,000 realtor thinks I could get it for $49,000, comes with all major appliances with exception of washer/dryer, tile kitchen, granite countertops, small outside enclosed/locked storage area for tools I can keep on site (separate keys), and a small little back porch with a nice view of the woods (property behind house is a few acres and no home right on top of it).

The tax value for the property is $70,000 with $25,000 going to the land - the remainder to the building. I don't know how to find Capitalization rates for the area...Suggestions?

The financial data: (being an accountant this matters the most).

Purchase price at $49,000 with 20% down conventional loan

Mortgage of $39,200 - estimated monthly outflow for debt-service $325

Realtor thinks I can get about $750 (more if I go section 8)

50% rule - $4,500 expenses

Gross income - $9,000

Expenses - $4,500

Debt Service (not including tax & insurance included in 50% rule) - $2,400 ($200/month)

NOI: $2,100 annual / $175 monthly or 4.3% capitalization

Cash on Cash ROI: 21.4% ($9,800 down).

Please analyze my financial data and situation and let me know if I am missing a major plot hole here because to me its a no-brainer.....

Thanks for your help =)