I just completed a deal that was almost spot on to your example above, and in a fairly hot market.

The best part is you can throw the property on the MLS at anytime if the market gets hot.

And keep the $5k for the 0% APR debt in reserve (or pay for it close to maturity) and only use it for a smoking hot deal.

But truthfully in a hot market rents don't align with price.

@Jessica Harriet, the Portland, ME real estate market is very hot right now and a rent stabilization effort is on the ballot in November.

well I am going to offer some other type of adviceyour one of a million who want to make big money flipping houses.. hard to do very few do it well and its competitive as hellI would in your situation spend the 1k and get a real estate license and hire on with a top producer and get PAID to learn.. in a hot Denver market with high price points you can stumble to 50 to 100k a year... and you work weekends .that will give you a foundation and you will make far better contacts than at meet ups.. .meet ups that I have gone to at least in my perspective are a total waste of time.you have the experienced guys just looking to take advantage of guys like you.. hey bring me a deal and I will pay you a few grand... there is no future in that.. and if you have no money no experience you need to get both.. so that's one way to get into the industry and become a professional..

Doing so can provide you a small advantage that can help you get a deal in a hot mkt.I researched mkt rents by talking to multiple property mgrs, area locals and skimming sites like Zillow and Trulia.

The house already has central heat and air, but it is in Arkansas and summers are hot here.

Hawaii is such a hot spot for vacation rentals, and year-round demand keeps prices high. 

I am a 33yo residential/ light commercial hvac mechanic/ installer who has installed all types of equipment From:(ALL BRANDS UP 5 TON)-Air handlers-Heat pumps-AC unit-Furnace-Coils-Heat water coils-Minisplits- Aquatherm-hot water heatersLooking for a seasoned real estate investor who will take me under thier wing and teach me hands on real estate investments I work for a huge HVAC company here in Richmond who does all type of projects I also have done projects for Habitat for Humanity so I am familiar with the Energy Star programI can offer you HVAC installation at a discounted rate and I have good credit as wellAlso I have been studying real estate investment for some time now I definitely want to get involved with flips and eventually buy-and-hold dealsIf you're interested in doing business with me I can be reached at graysppatgmail thank you hope to hear from you soon