Is this a good deal on first rental property ?

[Jun Wang]

Hi, I am new to Biggerpocket and looking at my first rental property. The property I am looking at is one bed one bath patio home located in class B neighborhood in northern Alabama. according to rentometer, the rent average about $850 monthly. the property tax is about $1100 annually, and HOA fee is $80/monthly that covers lawn and pest control, garbage, and pool access. I am thinking about making a cash offer on the house at asking price of $100,000 and hoping to cash out refinance later to buy another rental property.

what do you guys think about his deal?  

thanks for you help 

[Carmichael Lewis]

Hi Jake- Just my opinion, why would you use cash when you could go conventional? You would want to keep as much liquid cash as possible. With the other 80k, you can purchase 4 more 100k homes.