Is this a good FIRST deal?!?

[Kurtis Montgomery]

Hello BP community!

I have been in my education phase for around 4 to 6 months and am an obsessive learner. I want to transition to the next phase, which would be to put my boots on the ground. I initially talked to a couple first circle private money investors, but turns out timing is bad with 3 of them (one isn't in a position to buy or finance after paying property tax on 90 something properties, another just finished a BRRR strategy and passed on this opportunity, and the third is being audited and my gf, which is his office manager, said it wasn't a good time and to wait until the fog clears).

I am about to make my first purchase with conventional financing, doing all the numbers by myself too, and I wanted to run it by the BiggerPockets forum to make sure i'm not buying a dud or if cash flow and ROI are actually the things i'm buying for.

This property is in a district of East Chattanooga, which is being gentrified. It isn’t in the best area, but starting out it looks like a great cash flowing property. Here is a link to the zillow page just to gauge map and specs of it. The numbers I input into the rental calculator are more conservative than what zillow specifies just because I know the site isn’t the most reliable.

I’ve used the Rental Property Evaluator and Investment Calculators provided by BP.  I don’t want to get too vested in this property so I’m not blind to any mistakes if i’ve made, if any. The property is in great shape and only needs fresh paint and interior trim. It is also between two churches and in a very clean block.

Since I can't upload documents to this page I will give an overview.  

The property is listed for $19,500. Exterior is in good shape and so is the interior. It needs fresh paint and interior trim. Kitchen and bath are also in good shape. The rehab cost i input around $2,000 just in case as a buffer. Loan interest rate around 5% with a 20% down payment for 30 years, no HOA, Yearly Home Owners Ins around $68.25, Annual taxes at $593, saving monthly maintenance at 5%, vacancy expense at 8%, monthly Cap Ex at 8%, and I included a monthly Property Management fee like the guys say in case I hold onto this property for the longest term at 8%. In the area I conservatively input monthly rent at $700. With these numbers input my evaluation looks like this:

Loan amount (before down payment) = $21,500.00

Down Payment= 3,900.00

Monthly loan payment (P&I)= $94.48

Monthly HO Ins= 5.69

Monthly taxes= 49.42

Monthly Maintenance estimate= 35.00

Monthly Vacancy cost estimate= 56.00

Monthly Cap Ex estimate= 35.00

Monthly PM fee= 56.00

So my total Monthly Costs= $331.58

Monthly profit= 368.42

Annual profit= 4,420.98

Debt coverage ratio= 2.11

Annual ROI= 15.85%

and Months to break even= 75.73

Thanks for reviewing and please feel free to comment!