I'm looking at purchasing a single family house with tenants in place as my second rental property. My first was our former residence so there was no real transaction to deal with. 

Purchase price is around $35,000 (my area is very affordable and it is a somewhat depressed neighborhood)

I calculate monthly expenses at about $400(and I am trying to estimate high) and the current renters have been paying $600

The current owner bought it late last year as part of a package deal and doesn't want to be a landlord so is selling. He already did a number of improvements including a new metal roof so there is no major work to be done. As far as I can tell just a few minor repairs and probably a new stove. Siding is a possible unknown - it has some kind of faux stone veneer that was then painted and is now peeling.

Renters have been there 14 years and say they are happy with that place. I met the wife, she seems very nice. No pets, non-smokers. the Place looked decently clean. They are month to month with no lease. I don't yet know if their rent amount has had any changes recently.

My plan would be to have them sign at least a month-to-month agreement and possibly a year lease if I can. I was thinking of raising rent of month-to-month or offering to keep it the same or a smaller increase if they sign a 1 year lease.

I just learned about an estoppel cert but from the current situation there may not be much on that cert since there is no lease. There may be a deposit to be transferred - I am finding that out.

There is no opportunity to do a BRRR here but I am thinking I like the idea of immediate revenue even though I can't get my original money back out.

I am planning on traditional financing with 20% down. The expenses above include an estimated mortgage payment

Any thoughts? What else should I be looking for?

This is my first post so be kind.