How do I analysis risk on a house hack as a new investor?

[Jake Steele]

Hi guys,

I'm looking to get into real estate investing with house hacking & I wanted to put the deal here to see what people think. I'm fairly new & I think it looks like a good deal but I'm not sure about the things I'm not accounting for. 

There is a 5bd 2.5b that is for sell in my area and the seller countered my offer with $194,900. I already have three people that agreed to live with me for $450 a month and I would have one more bedroom to boot. If I'm able to fill that room, I'll be generating $1,800 a month in revenue each month with PITI being around $1,000 per month.

There are two big hesitations I have. First, the people that lived there previously were smokers. The seller painted the walls but you can still smell the smoke. I would need to get that out of there if I wanted to stay in the house & I'm not sure how to estimate the costs on that. All my potential roommates have also agreed that they would want the smoke out. I have read that I would need to carpet, paint/seal the walls, and clean the ducts. If you have any experience with how do you suggest I proceed? Is there anything I should be aware of before purchasing a house like this?

Additionally, the house is at the back of a neighborhood and the lot behind it is getting turned into an industrial park/logistics center. I don't know how to account for the way that it would affect property values going forward. Is that too big of a risk?

I'm unsure how to measure the benefit of such high cash flow vs. the risk of being unable to get rid of the smoke or the industrial complex ruining property values. 

Any advice or thoughts are welcome as I'm very new to this. 

Thanks