Is this SFH a deal for rental properties in Tempe, AZ???

[Daniela Craig]

Hi Everyone, 

I just joined BP about a month ago and started researching REI around the same time. I'm 21 years old and so far BP, some books and youtube have been my main resources for information. I've decided to place my focus on Rental properties and now I'm at my first Deal, and i need some help.

Im Purchasing a 4 bed 2 bath 1376 sqft SFH in the heart of Tempe,AZ less than 2 miles away from Arizona State(college town) for 195K. The median Sales price in Tempe is 242k and I'm getting the house at a 20% discount. So i feel like I'm getting a deal but on realtor.com & Zillow it says the home is worth 171k.

I haven't got the appraisal or inspection done yet as the offer was just accepted today. But i ran the comps and the pricing is fair but the zestimate & Realtor estimate on the house is psyching me out and I'm nervous about the deal. I feel like i shouldn't be worried about the estimate because my main priority is cash flow. Im getting a 25% cash on cash ROI. So my question is... is it still a deal even though they say the house is worth 171k? Also do you have any tips or advice as i go through this 10 day inspection process?

Thanks

Daniela