First Investment Property

[Corey Schlueter]

Im looking at a property right now priced at $20,000. I estimate renovation at about another 20k, so I'm in it for 40k. Cash flow would be great as rent in this area are 800/month for this type of house, but I cant seem to find good comps. There all over the place from 83$ a square foot to $52 on houses that sold fully remodeled recently. The house im looking at in 936 square foot witch puts my price per square foot at $42 per square foot. Not counting my 30% discount. 

I guess my question is should I buy it even though the resell value doesn't quite reach my 30% margin just because the cash flow will be good? What would you guys do? There is also 8 other offers so I might have to pay a little more to get it.