Second set of eyes in Memphis

[Ben Roberts]

I'm considering a buy and hold or potential wholesale deal in Memphis, TN and would greatly appreciate a second opinion.

ARV: $55,000 Purchase price: $43,500

Rent: $775 / Occupied

Mgmt: $77.5 Repairs & CapEx: $117 Vacancy: $64

I can get financing with %15 down, 20 year loan, 3/1 ARM, est. %5.6, my PITI is around $406.

Rent $775 - Expenses $258 - Financing $406 = $110 in cash flow

It feels a little thin.  My total cash to purchase the property will be $6,500 + closing.

With a contract for $43,500, I don't think there's much room for a wholesale opportunity & a 30 year loan would increase my cashflow by about $40/mo but I can't seem to find one right now.

The property is a 3/2, 1,000 sq. ft. the lease renews in August, month to month, at $825. It was originally purchased as a turnkey investment about 5 years ago. Hot water tank is 4 yrs old. Ext.A/C unit is about 2 years old. The rent roll and tenant history look good. 

Thank you in advance for any thoughts.