The next thing I would say is not to be relying on estimates which I see that you are doing.

Interest rates are still historically low, and to take on what is on paper a bad deal just to get something that doesn't really matter (long term) is just silly.What I mean by 'doesn't really matter' is this: a) rates aren't really that high, b) the OP is willing to take an $1000 hit on costs, but not willing to take the same hit when it comes to the difference in mortgage payments, and c) the rate can be re-financed in a couple years anyway...And this is HOA and MR?

*This post does not constitute legal advice and is not to be relied upon. 

The information contained in this post is not to be relied upon.

The information contained in this post is not to be relied upon.

Also, you don’t be have to be RE professional to get deduction for your rental activity.

When you apply all revenue from the rents to paying the debt service, you will be relying on reserve funds having to come from some other account should some event occur that would normally draw from reserve (some examples are replacing roof, replacing heater, handling an eviction - there are other such events).Be certain you do have reserves to cover your (somewhat) unexpected expenses.

Should probably be re-created in the local real estate forums though, no?

Lastly, because of my lack of experience I can't be confident in what I think might be red flags: Conventional financing, 20k under comps, new roof and looks to be in great shape...

*This post is informational only and is not to be relied upon.