First Rental Analysis - Deal or No Deal?

[Tony K.]

I have a lead came in from Auburn, Wa, which is about 30 minutes away from Seattle, Wa. I was wondering if this deal seems enticing to a buy and hold buyer? In my particular market, King County, properties prices are high and difficult to find good cap rates. Our market average is 4-6%; however this property has been analyzed at 7.89%.

Deal Analysis:

Sale Price to Investor: $140,000

Repairs: 0 (Fully renovated, new tile floors, marble granite table, move-in ready)

Rental Estimate: $1,400

No HOA

Annual Taxes + Insurance = $2,200

House built in 1969, 3BE, 1 BA

House is 960 sq. ft.

Rental comps in area are between: $1350-$1500 for 3/1

Great cash flow property, right across the street from a community college in high demand for student rentals). Owner inherited family’s property but does not want to be a landlord anymore.

Would this be a tough sale or does it seem reasonable?

I appreciate all feedback.