I got a One-One in an Opportunity Zone.

[Adam Scheetz]

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The Report above is for an off market property that came to me by way of my agent. Typically, I'm looking for 3/2 Ranchers in Upper C/Lower B neighborhoods. But...this one in particular caught my attention because of the low entry cost. The Seller wants $13k! The structure is surprisingly solid, the sub flooring and foundation are solid, and the neglect with the exception of a couple spots is very minor and cosmetic. 

Here are some specs:

• Super low property tax!
• Low Insurance.
• Out of Flood zone.
• Across the street from a brand new large middle/high school.
• In an opportunity zone.
• Supported by community initiative to revitalize the area.
• Close proximity to churches, dining, downtown, popular river, University, Major Hospital, and large Golf Course.
• Sitting on 3,500 size lot.
• Current rental for 1/1's are between $500-$650 depending on level of amenities.

Notables:

• There is chimney in the middle of the living room that is hurting bad. Since a new roof is needed anyways, I want to remove the chimney entirely and open the floor plan to maximize the space. 
• New laminate hardwood, New kitchen, new bathroom, new trim and paint, New CapX items. Being in the south, the rehab cost are thankfully low.
• Backyard is way over grown with a dilapidated shed. After mowing, removing bushes, and replacing the shed, the before and after pics will be astounding.

What I need from you all is input on the concept of Buy & Hold of 1/1's. I know the sale of 1/1's are typically a bit harder, but because my plan is to hold, and the area in particularly geared for small families and singles (University, Large Hospital, Industrial workers), AND the low purchase price. I hit my goal for cash flow. I hit my ROI of at least 12%. I have an agent and PM in place already that I have been working with. I'm just not typically familiar with small single-family properties. Does the low cost of ownership and rehab off set the struggle to potentially sell if needed.

I'd LOVE to know your thoughts. Can 1/1's be a strong investment?!?!