My 1st Post: Is this worthy of an Investment?

[Derrik Jacobson]

Okay, first post here.  I am relatively new to the Bigger Pockets community and have been reading a lot.  Currently I am trying to dial in what the real estate market really entails for me locally (as I'm still measuring my comforts with investing further away) and whether or not I should jump in or continue to be patient.  I moved to Yakima, WA from Seattle a few years ago (roughly 3 hours east) and am considering a SF buy and hold investment as a rental.  As is, I'm not relying on any appreciation and looking at this as a vehicle for rental income.

Is the below deal worth pursuing?  Any advice feedback would be appreciated!

Details:
3 bedroom, 2 bath built in 1960. 1600sf.  No carport or garage.  0.25 acre park-like property.  Doesn't require much for updates at all, good roof, all is functional, etc.  For the most part, a turn-key property as I understand it.  I am also extremely familiar with the property itself as this property is in-the-family so to speak.  I am also extremely handy and could handle 95% of the repairs myself.

The property will likely go on the market for close to $235,000.  I can purchase it for $200,000 (would be bank-financed but for sale by owner).  Zillow puts it at $231,000 with a rental estimate of $1,400/month (which I feel is reasonable per my research).  I am not looking to flip this property in any shape or form.

That being said, here are my year-one assumptions:

Purchase Price:  $200,000
Improvements:  $1,000 (washer and dryer, misc cosmetic small items such as a new ceiling fan)
Closing Costs: $4,500
Down Payment: $50,000 (25%)
Interest Rate: 30 years @ 5.5%

Monthly Rent: $1,400  (although hoping to list at $1,500 as a few comparable properties have achieved that)
Vacancy Rate: 5%

Property Taxes: $1,825
Insurance: $200
Maintenance: $1,680 (using 10% of rent but feel like this would be less doing things myself)
Utilities: Paid by tenant
Yard work: Most by tenant
Property Management: None for the time being

Annual Cash Flow:  $1,700
Cash ROI:  3.39%
Capitalization Rate:  6.13%
Total ROI:  7.47%

I realize that this does not clear the 1% rule, but what are others doing in this case that don't want to invest in non-local markets?  Am I just tying up my money or is it better to invest in these circumstances rather than clinging to the hope that the market for purchasing rentals will improve locally?

Thank you!!!