Advice on SFR Property

[Scott Lyons]

Looking for some advice on a SFR that I'm looking at. Still looking to buy my first investment property. I've been mostly looking at 2-4 units but a SFR popped up in a great area only 5 minutes from my house. Awesome location, great school district, house was great, perfect condition (that I could tell), updated, etc.

I'm estimating I can get the house for ~123k and rent it out for 1,300. May be able to get a little more but I think that is a petty reasonable estimate. So it barely gets by the 1% rule. Based on 8% vacancy, 5% repairs, and 5% capex, it'll generate $175/month in cash flow. That's after everything. Normally I'd probably move on but considering what "I think" will be relatively low maintenance property and the fantastic location I'm wondering if it justifies the lower return for a first purchase. At the same time it will eat up a lot of cash that I could use for higher return investments (and I think the market will start going down within the next year). Curious to hear the different view points on this.