@Jake Glassman and @Wendy BergerMy partner is based out of Santa Monica and could help you.

I tried to include all the pertinent information below:Rental Income: $13,200Rent: Currently has a tenant on one side at $550 per month without a lease – I’ve made it a condition of the sale that the tenant has either signed a new lease with my property management company or delivers that side vacant; other side is not rented out due to required rent ready repairs; rental comps in the area show between $550-600 (I’m being conservative and assuming $550).Expenses:Vacancy: 10% ($1,320)Property Management: 10% of gross rents ($1,188)Property Taxes: $2,065 ($905 for City of Memphis, $1,160 for Shelby County)Property Insurance: $450 per year Repairs and Maintenance Assumption: 2% of Property Value per year ($980 per year)Utilities: separately metered; all paid by tenant except for lawn mowing at $25 once a month for $300Advertising: 6% (roughly ½ of first month’s rent) $792 per yearDebt Service: Based on $49k purchase + repair price, 20% ($9.8k) down, 5% 30 year fixed is $2,525 per yearLocation:This is probably where most of my concern is coming from: Western edge of Hickory Hill, Memphis, 38115; major cross streets: just SW of Clarke Rd and Winchester RdAcquisition:Purchase Price: $42k, seller to pay closing costsRepairs: $7.5kTotal Acquisition Cost: $49.5kARV: Large range of comps in the area, best guess is $60kFinancial Metrics:Net Operating Income: $6,105Cap Rate: 12.33%Cash Flow: $3,580 per year, $298.33 per month, $149.17 per unit per monthCash-on-Cash Return: 36.5%Do you think it's a good deal?

Also, just based on the area, I think for the state it is in, it is overpriced.  

If the fee is 4% of base rents collected and 200,000 is collected that is 8,000 a year.

These are the things you can identify while chatting about RE.In short, you figure out the numbers based on the market and what you can do.

Anyway, my strategy (exit as well) has been based off of them, so I am just trying to do my due diligence in establishing a relationship for not just this deal, but hopefully more to come.I would be the grantor/applicant and FICO is 775+ so getting approved is not an issue.  

You need to get with more seasoned local investors who might see other problems you may not have thought of on this property.Contractors might be quoting 18k for repairs based on what they see.

Not to burst your bubble, but you are about 5% of the way there, based on what you just stated.  

If not, based on your low down and income, I would suggest looking into another property that is 3-4 units.Hope this helps!

Based on your area, look for 2-4 units.