Hello BP world!

I am a newbie investor looking to purchase my first investment property. A property just recently went up on the MLS that looked interesting so I did some number crunching to evaluate it as a buy and hold investment/house hack. Please note that this is my first time posting a deal on BP. Therefore, I will most likely leave out information, but I will do my best to provide it all. Feel free to ask questions! Also, to do my analysis I am using the SFH Rental Analysis Excel workbook that J Scott shared on his FilePlace.

Property info:

3/2 1,338 sqft
Asking price: $250,000
Block home built in 1956.

Features:

Has a newly resurfaced pool (2019) and a fireplace (currently capped). Wood and tile flooring. Has wood beam ceilings and finished wood plank ceilings in the kitchen. Master bedroom has bathroom with a large shower.

My concerns:

- Exposed AC ducting on the roof (not in attic) going from what looks like original home structure to additions.
- Structure on adjacent property is uncomfortably close to structure on this property (about 6 ft separation on Google Earth).
- Home sewage uses a septic tank (not sure how much of an issue this is, but I have heard nightmares).
- This is the 5th time this property has been listed for sale in 2021. This seems high to me. The asking price has not changed. The agent remarks on MLS state that the "home is BOM due to bad appraisal; inspections done and no lender required repairs."

My Analysis:

Costs:

Purchase price: $250,000

Improvements: $5,000 (place seems to be in great condition, added this to be conservative)

Closing costs: $15,000 (assuming 6% of purchase price)

Financing:

Down payment: $8,750 (assuming 3.5% down FHA lown)

Interest: 4% (is this conservative enough?)

Mortgage: 30-yr fixed rate

Revenue:

Monthly rent: $1,800 (using rentometer and assuming property is a rental, even though I would most likely house hack it first)

Vacancy rate: 8%

Expenses:

Property taxes: $2,400/yr (rounded Zillow's $196/mo to $200/mo*12 mo/yr)

Home insurance: $1,100/yr (rounding Zillow's $88/mo to $90/mo*12 then rounding that up to the next $100)

Maintenance/repairs: $1,300/yr (assuming 6% of monthly rent and rounding to nearest $100)

Advertising: $150/yr (default value in J. Scott's SFH Rental Analysis Excel workbook)

Administrative: $150/yr (default value in J. Scott's SFH Rental Analysis Excel workbook)

Variable cost property management: $1,980/yr (assuming 10% of monthly rental income)

CapEx: $1,300/mo (assuming 6% of monthly rent and rounding to nearest $100)

Cash flow and ROI (w/ property management):

Annual cash flow: -$2,401

Cash ROI: -8.35%

Total ROI: 6.43%

Cash flow and ROI (w/o property management):

Annual cash flow: -$421

Cash ROI: -1.46%

Total ROI: 13.31%

After actually typing this post and looking at the numbers, this deal now does not make financial sense. However, I still welcome any feedback on my assumptions.

Thanks in advance!