Need help analyzing a deal

[Brandon Harkins]

This is my first post. I have one rental that my fiancé use to live in. I’m currently looking at a second.

House: 3b1b 1070sf house built in 1940 

Listed price: $62500

It's currently rents for $875/month and needs several repairs. There are multiple soft spots in the floor, minor ceiling damage throughout, shower/tub kit likely needs replaced, areas of rotted wood on the outside, old floor furnace needs properly sealed, and the carpet needs ripped up and replaced. It hasn't been inspected, but will be before I buy it. Cash flow is the main goal. With some quick math I'm looking at around 17% cash on cash ROI. Any input on if this is a good deal or any red flags I should be looking for?

Any help is appreciated. Thanks 

[Matthew Tyson]

Quote from @Brandon Harkins:

I only plan on paying cash for the down payment and repairs. It’ll be 15% down. Repairs I’m estimating (very roughly) at around 5-7k.

IIf you can get a lender to finance the deal and repairs come in at $7k - without knowing more it sounds good on the surface. I would be sure to have a detailed scope of work prepared for a contractor to bid repairs. You will want to make sure the place is in top shape to reduce capex costs down the line.