KCK - Deal Eval Help

[Katy C.]

Hi BPers,

I have a possible deal in KCK. Nicer neighborhood, good schools, big backyard... Should be able to rent this 2 br / 2 ba, 1,500 sqft SFR for around $1,200/month.

Purchase price: $105k, 20% down

Repairs/upgrades: $5k

P&I: $426/month

Anticipated expenses and reserves (vacancy, taxes, insurance, property management, maintenance & repairs) come to about 50% of rent

Cash ROI: 8%

Total ROI: 13%

My question is - should I be concerned that it takes 8 years to generate enough cash offset the initial cash outlay? I know that down payment is immediate equity in the property, but it is cash that is then tied up and not making 10-20% in the stock market. Apologies if that's a newbie question... but I'm new, so there you go :)

Thanks!