Need advise on a property in Philadelphia, good deal or no deal
I just started investing in real estate. This is my first out of state property that I am looking to buy. I find this condo house in philadelphia, purchase price is 173,000 all cash payment. Rent in the area is 1200 a month. Need to replace the floor and some minor touch ups and a fresh coat of paint, would probably cost around 5000. After I included all the vacancy rates and expenses per month, there is $560 per month cash flow. The purchase cap rate is 3.89% and cash on cash ROI is 3.67%. I am not sure whether this is a good deal or not. (If I put 40%down, I will have a negative cash flow on this property (-$20)) I feel the numbers are not very promising, but yet I also want to take a step forward. Thank you in advance for your thoughts.