First Deal? Single Family for 120, needs 10, arv 165, 1300 rent?

[Matt Gee]

Found a non-mls home, Single family, good neighborhood, maybe a B.  Asking is 120k, I'm thinking 10k-15k in repairs (needs a new bathroom, some flooring, paint, kitchen refresh. After repair value of about 170k (based on comps it says 171k, I'm thinking 165k being conservative).  

It would rent for about 1200-1300

I can't find anything that hits the 70% rule, nor the 2% rule.  

So numbers breakdown:

120k purchase, 3k closing, 10k rehab.

133k in.

Mortgage payment (supposing 130k financed at 4.5%) is 660

Add 175/mo taxes

Add 50/mo insurance

Add 75/mo water

about 1200/mo-1300/mo rent.

that leaves about 325/mo cash flow... Is this a horrible deal?  Mediocred deal? Good deal? My goal is a combo of BRRRR/ ~5-10 year hold... I'm having a hard time of figuring this out.

[David Jay]

There is probably no cash flow with those numbers once you account for maintenance,vacancies, and property management. However if I am reading this right you will have basically zero cash in the deal. Is your plan to buy for cash, repair than look for financing at the ARV. If you can pull this off with no cash out of pocket after financing you have 40k in equity, a tenant paying the mortgage, and hopefully the prospect of appreciation. That sounds like a winner to me.