Potential Deal Near Me

[Ryan Moret]

Hi BP!  I am working on my first investment property deal right now.  First a little background and where I am at.

My wife and I just sold my bachelor pad condo and made about $55k off of the property.  We just moved to a nice little neighborhood here in Dallas and we would love to find a rental property around us as well (easier to manage this way and quality of renters would be great).

A house popped up for 200k that would ARV for $265k and somewhere from 1800-2000/mo for rent. I am checking it out tomorrow to analyze the exact amount of rehab necessary. For a gut check, i am assuming 20k of rehab (which would be pretty high, fingers crossed).

Though this maybe isn't the slam dunk of ARV*.70-Rehab, it does have some pluses that I think are worth considering

1. It is down the street from my current property in a fantastic neighborhood and would be able to fill with a renter in any economy due to proximity to university and great school district
2. I can fund this deal with most of my condo sale and a little bit of cash set aside. No reason to get crazy with HML or anything like that
3. Easy to manage this rental for a couple of years to avoid short term gains tax as it is down the street from my house.  The cash flow alone just may be worth it.

My question is, a convenient property that I can gain a decent amount of equity in and make a little month cash without over complicating the deal worth it?