IRR, Dangerous Taxes

[Darci Aita]

I am considering a short sale property as my first investment prop. Based on comps in the area, it's about half the price it should be - however sale history shows it's about 40k under what it should be (previously sold for 200k, now at 165k). It's a 4 bdr 2/12 bath with another bedroom in the basement. Based on this, I would allocate 20k for updates and repairs. 

I have lived in the city for 8 years now and I know it's a good area with a lot of wealthy families (Oak Park, IL). 

The mortgage and price are amazing, but taxes are really high (13.5k!) I was hoping it was a typo but all nearby homes are in the 11k-14k tax range. Overall, the mortgage, taxes, and insurance will add up to about $1850 a month. 3 bedrooms in the area are all above $2700/month. I'd imagine I could at least get $2500 (hopefully more, but I'd rather be modest in calculations).

I could afford the payments for at least 10 months without renters. What are your thoughts? I appreciate any insight or advice you might have.

p.s. my first home was a short sale so I know they can be a pain, but worth it with patience!