Like the others have said, PM is critical as I am finding with my first PM, and looking to change.

Just evaluate what aspects of the house that are susceptible to wear and tear and then over-engineer to make them stronger.

Purchase Price: $25,000 (without negotiating) Repairs: $4,000 Closing Costs: $3,000 (this may be high, but figured it's better than undercutting it) Down Payment: $5,000 (20%) ($25,000 + 4,000 + 3,000) - 5,000) = $27,000 (Loan Amount) Rental Income: $800/mo Property Tax: $31/mo, $372/annInsurance: $9/mo, $108/annInterest Rate: 4.5%PITI: $176.80 Vacancy: (10%) $80/mo, $960/annProperty Management: (10%) $80/mo, $960/annMaintenance: $100/mo, $1200/ann Operating Expenses: (176.80 + 80 + 80 + 100) = $436.80/moIncome - Expenses: $800 - 436.80 = $363.20 Cash Flow ROI: Annual Return/Total Invested: 4358.40/12,000 (4,000 + 3,000 + 5,000) = 36.32%Advice and criticism is encouraged. 

That’s probably your best metric since this unit may have an aspect that makes it more or less desirable.

I think you've got a lot of great feedback on this, but I'd to add one tip that I feel is critical.

Hey everyone- do I saw a post earlier this week asking about any negative aspects to getting one’s RE license.

Have a critical conversation with them and offer a solution.

As Chattanooga continues to grow as a sought-after market, having a larger piece of land is a great selling aspect of the property.

Learning all of the codes is going to be a constant task so I am thinking of ways to stay up to date with all of the legal aspects and at the same time exceeding them where I deem neccessary.

We believe we have found a good possible tenant for our space and I'm looking to get everything ironed out so the lease aspect is really the final part.Thanks in advance.