Help with Buy & Hold, Not Understanding Numbers

[Richard D.]

My niche has always been raw land bought at tax deed auctions, and flipping those properties. I now have an opportunity to possibly acquire my first rental property. When I run what I think are accurate numbers I am finding that the property is a loss, I think, but not sure. 

Here is why, I think it's a good deal.

1) I get close to $200.00 in positive cash flow following the 50% rule.

2) After about $5000.00 in rehab I get $30,000 equity.

3) It's under priced for my area, 2-1s have sold for the same price in the last 6 months, and this is a 3-2. 

Here is why I think it's a bad deal.

1) The charts on the analysis graphs make it look like a money pit.

2) The age of the house. I knew the prior owner (RIP) and he took great care of the property. It's one of the nicest in the neighborhood.

3) The price, why so cheap?

Can BP nation, help me analyze this deal, tell me what I'm missing, and/or what makes it a good deal?  

Report 4 Buy & Hold