Potential FIRST rental property. Good or Bad Deal? HELP!

[Mason English]

Hey guys! I want to get my first rental property this year (as soon as I can really), and I want to know what you guys think about this option. Long story short, my grandma lives in a small town in Texas, and is selling her house this summer. She mentioned some other investors are interested in her home. I asked her to give me first choice to buy the property. I think it would be good to keep the house in the family considering all the memories I have there. Also I live 4-5 hours away, and will most likely get a property manager. This is my first time to run through a property using the BP calculators, so here are the numbers and tell me what you think. 

3 Bed/ 1 Full 1 Half Bath/ 1,432 sq ft/ Built in 1958/  2 Car Garage/ 1 story 

Current Value (Realtor.com)= $125,000 (purchase price for example)

ARV (estimating)= $140-$160K .. current median listing price is $159,000

Repair= $5-10K Cosmetic

20% Down- $25,000... Loan of $100,000... 3.9% interest (guess)

Monthly P&I= $471.67

Monthly Income= $1,500/mo

Monthly Expenses= $1,341.25

Cashflow= $158.75

NOI= $7,565

COC ROI= 5.15%

Estimated Cash Needed =$37,000 ($25k DP, $10K Repairs, $2K Closing costs)

I have almost $20,000 saved, and $15,000 Line of Credit available. 

My parents live 10 minutes away from the house, so they could drive by to check on the property, help fix minor repairs if needed. 

**Also, I currently live in San Antonio, TX. I want to invest here as well, but I don't want to miss this opportunity if it may be a good one for me to start with, and that I get first choice. But, would you invest in SA first instead because obviously the real estate market is better?

Is this a reasonable first deal? If so, what would you recommend the best way to go about financing? Thanks you for your advice!

[Tyler Roicki]

Hey @Mason English! I'd recommend making sure you are viewing that particular property from an objective point of view. You mentioned the memories... While memories are priceless, caution their ability to influence a financial decision by bringing emotions to the picture. On that same note, I'd caution the tendency there may be to skew the numbers more favorably than the market cares to bare. It may or may not be the right opportunity! Either way, just be sure you are checking emotions at the door on that one.