Investment property near university

[Terry T.]

Hello all,

I really need some advice from you! Please help.

A little intro, My name is Terry, currently living Winnipeg, Canada. 26 years old.

Ok, here we go, my friend is selling a rental property near university of Manitoba, 7 mins walking distance from the university. Right now the house is fully rented to 8 students. Having a cash flow of $3200. The house was built in 1963, 1088 sq ft, One Storey bungalow, Land: 6473 sq ft. First floor got 4 rooms, with a kitchen and full bath. Basement 4 rooms 1 kitchen, 1 shower. The house has a detached garage. Property assessment value (Market Value as at April 2012): $275,000 Property assessment value (Market value as at April, 2014): $302,000

My friend has asked for $348,000, I might be able to get it down to $345,000

Here's the calculation

Price: 348,000.00

Mortgage: 1,200.00 ish monthly

Property tax: 280.00

Utilities: 300.00 ish rooming 8 people

Home insurance: 100.00

I am planing to put $100.00 per month for maintenance.

Total expense: $1980.00

Total rental income: $3200 ($400.00 per room)

Net income: $1,220.00

I have been to the place, the place is definitely a "rental place", nothing fancy, not surprised! The only concern I have is, the first floor bathroom has some shower leak, there were some water leak sign in the basement ceiling. I am just concerned it might be a huge expense for me later. I also know somehow I am paying a premium on this house since it's already tenant occupied, cash flow right after the purchase. 

I am just got so emotional on the one, please give me some advise! I really need your help!

Your response would be greatly appreciated!

Best,

Terry