I have been offered a deal on a 2 bed/2 bath condo less than a mile from a university (desireable location). The owner is selling it for $50,000. The HOA fee of $175.00 includes the home ownner's insurance and it is tenant occupied currently renting for $700. Ideally I am looking to get a 12% cash on cash ROI. According to the rental analysis that I did, this property will generate a 9.8% ROI. Is that still a good deal worth jumping on ($128.79 monthly cashflow)? Also, what are your thoughts on the overall numbers that are presented in this analysis? I could most likely increase the rent in the future, but would like to keep the current tenant in place (at $700/month) if possible. The purchase price is a undermarket value so that is a definite plus for me.


Thank You!