First rental need help analyzing!

[Matthew Gillespie]

Hello BPers,

I'm currently in the process of negotiating a deal on a 3 bd 1 bath single family home. It was originally listed for 30k and we've negotiated down to 20k. The home is assessed at 32k. Homes in the area of varied drastically in sales price, from 27k 24k and 17k down to 6.8k(extremely dilapidated) This particular home would prob be rented to section 8 tenants but doesn't necessarily have to. Similar homes rent for between $600-$700 a month. The home itself is in good condition. But the furnace is 22 yrs old, hot water tank is 16 yrs, electric was updated in 2011. Everything else in the house is fairly nice(no water damage etc) I'm considering getting a home warranty policy in effect for the first 2 years after purchasing. However, this home will prob go for $600 if I decide to go section 8. taxes are $1,268 a year. I'm Planning on the tenant paying all utilities. Also, I'm planning on doing most of the maintenance myself (minus large plumbing/electric issues)

Please let me know what you guys think, and if you need any more information about this deal!

Thanks!!