Potential Foundation Issue

[Chris Garrett]

I am new to real estate investing, and I recently decided to take the plunge and offer on my first potential rental property. I was able to get the property under contract for $124,900 (1976 3x2 @ 1,500 SQFT). After all expenses, it should cash flow a little over $200 based on rental comps in the area (around $1,200 per month). There are a few items I expected to fix (appliances, flooring, etc.), but during the inspection it was found that there were screw jacks not on footings under some of the beams. To fix this the right way, I'm getting quotes around $7K. Once all is fixed, I would be in around $35K in order to make $200 per month cash flow. Does this still sound like a good deal? Overall, I'm getting an ROI of around 12% with cash flow and loan pay down (no appreciation included).