Boston MA area deal feedback

[James E.]

What's up everyone - first time posting on DA forum...be gentle!

I'm set to close in early May on a condo in Salem, MA. This may not be a home run but hopefully it's at least an RBI double... what does everyone think? Am I missing anything here that I'm not considering?

ARV: $165,000 - $170,000 (unit above is mirror image and sold for $170 a few years ago)

Purchase price: $130,000 (REO)

Repair est: $5k (contractor coming in on Monday to give quote)

Anticipated rent $1,500 / mo (already have someone interested in the place and will likely move in as soon as renos are completed, so will not need to carry it more than a month) 

P&I at 4.375% and 25% down: $487

escrow: $200/mo

HOA: $75/mo

misc expenses: $100/mo

Netting the above gives me $638/mo cash flow, which is $7,658 annually and 23% return on cash. 

The area is solid - 5 minute walk from downtown / public transportation so expecting low vacancy risk. Will likely try to hold for 2-3 years while the value appreciates back up and save the cash flow, ideally taking the sales proceeds to scale up.

Are there any other investors here in the Salem, MA area? What has your experience been like?

Thanks for any feedback - it's greatly appreciated!