Would you buy for equity but no CF? Please advise!

[THU NGUYEN]

Hi BP,

I am analyzing a deal that I am interested in, almost turn key, ARV: $150; asking price: $115K, closing cost: $2K, repair cost $7K. All in cash for $124K. Assume I can refinance and get back $112.5K (75% of $150K), my cash out would be around $12K, equity gain would be: $25K

My diploma is this after I deduct all expenses including PM, commission, mortgage, tax, hoa, insurance...I end up with almost nothing ($500 a year is my number).   I am still interested because it almost doesn't need any work (even though the seller quote $7K for paint and clean up), I can take advantage of the equity built up through tenant paying mortgage, depreciation.  

Am I off base here?  

Thank you much in advance for your input.  I know the experience investors would not but I am a newbie, still trying to learn and built up my rental portfolio by having tenant pay my mortgage.  No CF now so the only thing I can count on is the benefits of having a rental or decide to sell after 1 - 2 years?