First rental purchase - deal good enough?

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Found a local deal on MLS. Had been on the market for 3 months. Low-balled and they came down a ton and we now have a contract (still in option period) for $79,500.

$20k down (dp + closing costs) + $4k in repairs/etc to get rent-able.  $700/month expenses for 30-year note before any maintenance/vacancy/etc. is accounted for.  I think rent will be $900-$950.  

House was built in 1980, is in a safe area with good school district, but it's a small town between two larger towns that has lower demand (but also very few rentals available and they tend to go quick).  House has a new ac, furnace, water heater, roof, and was just leveled (pier & beam).  

Would that amount of cash flow be worth it for starting out? Assuming $50/month for maintenance, CoC return is 3% for a 20-year note and 7% for a 30-year note.

Hang on or walk away?  The market here is crazy hot and there just aren't many deals to be had...

Forgot to mention - my other big concern is that the $25k will basically wipe out our available cash for the foreseeable future.  Our only option to buy anything else soon would be a 401k loan, which is somewhat limiting.  We make good money, so we could build back up again, but it would take time.  

Our goal is passive income long term (20-ish years) to replace income from our jobs so we're not working til 65 (we're 33 and 34 now).