rental on 10 year note doesn't cashflow, is it ok?

[Alex K.]

I signed the purchase agreement before finding this site, so the deal is done, but please help me analyze anyway. The property doesn't cashflow but that's because it is a 10 year note at 8% (seller carry).

I am buying a mobile home on land with garage. It needs renovations with me doing the work.

purchase price: $80k
down payment: $16k
renovation materials: $3k
P&I payment: $800
expected rent: $900/month

tax is 600/yr so only $50 month.

Negative cash flow but this is for a long-term investment and the fact it will be paid off in 10 years has to add something to the deal. Is it normal to include only the interest portion of the mortgage payment in the cash flow calculation?

I want better return than the stock market over 20 years.