How do I calculate this deal?

[Scott Po]

I'm assuming a mortgage which will enable me to actually cashflow in today's market, which is what peaked my interest in the deal to begin with. Here's the deal;

Sales price: $407,500

Mortgage I'm assuming: $340,000

Interest rate: 2.7%

Assumption gap: $67,500

Monthly mortgage (no piti): $1,300

Market: Fort Washington, Maryland

Property: 5 bed/ 2 bath

The issue is that I have to come out of pocket on the assumption gap (difference between current sale price and old mortgage that I'm assuming). So I'm wondering if getting an extra $1,000 in cashflow per month is worth depleting my cash, especially if I'd like to do some improvements to the property. These improvements would be in the neighborhood of $20,000. The alternative would be using my VA to get a better property with no money down, but having that extra monthly payment because of the current interest rates. Doing this would allow me to save that $67,500.