My friends also clearly had no interest in taking care of the property, and it's pretty wrecked.

"As Is" might mean the place is a wreck or that the owner just doesn't want to pay for any repairs.Make sure you check that there are no open violations or permits on this property.Regarding your analysis:Management is low.

There is a 99.9 chance I will not wreck my motorcycle today. 

However if the property is a wreck making improvements to properties will add to the value as well by reducing the CAP rate someone is willing to pay for newer updated product vs older.

I am new to real estate, no experience at all..which is a little nerve wrecking right now, but I’m confident and believe I will succeed.

The previous owner must have done move in fees, so we have no deposits unfortunately, and we will need to do a few small repairs to wrecked doorway moldings due to their cats scratching and repaint the entire unit, since they lived there for about 5 years. 

Not to mention the HUGE assumptions:The market doesn't move against you over the years.The currently non viable buyer becomes viable over the next couple of years (this is frequently just not going to happen).The occupant doesn't wreck the property while occupying it, necessitating rehab #2 before it can ultimately be sold to someone else or rented again.I also cringe when I see things like "tenant takes care of the repairs".. because they presume that they'll be owners someday.

All you need is a leaky toidy to wreck and drown the system. 

I also would wonder about the grandkids part, but previous landlord can let you know if they wrecked the place or not.

It's simple math.Income - expenses (inc. mortgage) = cash flow (income)Cash flow in first year (income)  =  CoCReturnCash spent in 1st yearThis calculator, like most, is a train wreck.