Is this a deal?

[Aaron Canciani]

Hello,

I am currently in contact with a distressed seller in Ohio who wants out of their mortgage. It is a VA loan and having it is keeping them from buying a home at their new location in California. They tried to sell the house before they left but could not sell it without taking a loss, so they decided to rent it. There is an all-star tenant in there right now paying 1100 a month. The tenant is a 50 year old widowed nurse 3 months into a two year lease.

They changed their minds about renting the property after realizing they did not have enough VA entitlement left over to buy another house in CA. So basically they are trying to give the house away at this point.

Home Value: 122k

Remaining Loan Balance: 110k

Annual Taxes: 2,786

Annual Insurance: 750

I know normally people don't think of single family homes as good investments but this house already has a tenant only 3 months into a 2 year lease. Furthermore the rent rates look real solid in the area - I feel like I could do better than 1100 a month. Anyone have any thoughts? It looks like there could be $300 a month cashflow on this? Do people disagree?