Currently in the process of buying my first rental property, a duplex, in Akron, Ohio. Just got the inspection report back today and it looks like the roof is pretty worn and would need to be replaced in the short term (estimated age 20 yrs). There are a few other repairs like a broken window, and cracked joist, but don't seem as expensive as a roof replacement. I feel like I'm already paying a premium rate for the house in the market (around $130k), close to the highest comps in the neighborhood, and don't know if going through with the purchase makes sense.
The property would cashflow about $550 a month (6600 yearly) after all expenses (insurance, taxes, prop manager, mortgage, etc) for a cash on cash of 18%. Basically the first two years is going to the roof and maintenance expenses. The property is already 123 years old. However with some upkeep upfront this could return some really nice cashflow for a while.
What would you do in this situation?