First investment property

[Erica Shaunta Thompson]

Single family home 1200 sq ft

Motivated owner. 

Owes 103,000 on home, has a quit claim deed to home. 

Homes similar have sold 114,000-120,000

Owner says need new carpet and to pay off new a/c unit $5400 Loan and a few other repairs

He’s asking $109,000

Could rent for 900-1000

Is this a bad deal?

*cash flow 148/month

Cash on cash 5.3%

Return on investment first year -26%

Bad idea? Doesn’t want to do lease option because he wishes to sell and house shop this year or subject to.