Advice on a Rental Property

[Eric Gross]

My fiancé and I just looked at a property tonight as our first potential rental property and are looking for advice on whether or not it would pose as a good deal.

It is a single family home. The property is listed at $72,500 and we are looking to come it at $60-65,000. For the neighborhood we would get around $900 for rent. So our monthly income on the property is $900. After Expenses (mortgage, taxes, insurance, vacancy, repairs, cap ex, and property management), we would be cash flowing $107 monthly, and annually $1284.

It is located in a "C" neighborhood and the comps are pretty spot on. We are certain the rental demand in the area is high right now, and the city is trying to grow but we are unsure where it may land in the coming years and if it will stick.

The house has new stainless steel appliances, a new hot water heater and furnace, new windows, new cabinets and flooring. However, the house is only 950sq ft. (average for the neighborhood), there no garage and the school district isn't the greatest. We would also have to purchase a new washer and dryer set, as well as some small fixes that the owner tried to fix but clearly didn't do a clean job (caulking, trim work, flooring transitions, etc.) The backyard is sloped  straight down hill and we are also unsure of the age of the roof.

We will be doing an FHA and having to live there the first year, and it is currently a hike from both of our jobs and reliable sitters and just our every day lives. - We are trying to factor this in as well, as we could be losing money for the year we are there.

Any advice is completely welcome and thank you in advance!