Need help analyzing my first deal - Inkster, MI (near Detroit)

[Kris H.]

Hey guys!

New to the game, but have researched for a few months. Decided to get creative and just took out a HELOC (closed yesterday) that I'll be using as a down payment to purchase my first buy & hold with. I was approved for $30k but don't want to use more than about ~$10k of it - especially on my first deal.

That said, I've got my eye on a "deal" but would really appreciate a second opinion before moving forward. 

3bed 1 bath, 915 sq ft. w/ Garage.

City: Inkster, MI (near Redford, Dearborn Heights)

Purchase Price: $33k | Down payment: 25% ($8,250) | Interest Rate: 4.875%

Closing Costs: Approx $2400

Expenses:

Taxes: $1400/yr. | Insurance: $600/yr.

Water: $850/yr. (which I will pay)

Expected rent

$850/mo

Possible Rehab:

In General: Home is in nice condition, appears move in ready. Would of course have an inspection contingency. 

Furnace: Meh - Appears to be from 1998 but apparently works fine. Expect to replace within 3-5 years. 

Roof: Good - approx 8-10 years old

Water Heater: Good - 2006

My thoughts

By my estimate I'll cash flow approx $400/mo with 45% Cash on Cash. My biggest concern is the Inkster area - will it rent? Since it's my first deal I also feel like I may be too "green" and not wanting to make a mistake of jumping on the "first deal that knocks on the door" so to speak. But I also don't want to pass up a genuinely GREAT first deal - ya know? The reason I'm paying the water is due to the fact that I don't want a lazy tenant risking a lien being put on my property from the Detroit water authority. However, my assumption of $850/yr is also just that - an educated guess. If anyone knows any more accurate number for water costs in the Detroit area, I'm all ears. 

Anyone want to chime in? Am I missing anything? I appreciate it!