First Purchase... Maybe (Advice Welcome)

[Kirk Hart]

My wife and I are looking at our 1st purchase in our farm area of choice.  The question is whether or not the deal is good enough to pull the trigger.  

Goals: Long term buy and hold for positive cash flow and Increase investment cash through equity in 1st property.

Example: Let's say we have $20k to put down on $100k deal on a property but, the property is worth $130k but the seller just wants out and home sales can take a year or longer in this area.  The house could rent and provide only $80 positive cash flow per month after all expenses including property management, maintenance reserve, etc.

Equity in home after purchase: $50k roughly

Cash on Cash: Only 3.8%

BTW: There are 0 rentals available in this area and most don't allow pets and we think we can make this our niche by allowing them.  Yes, Yes, with proper deposits and built in protection with rent prices via maintenance reserves.

This is one method we are considering rather than trying to find a flip to increase investment capital this year.

Thoughts, considering low Cash on Cash but possible increased investment capital through equity?

Thanks in Advance!

-Kirk