Should I do it? First Rental in the new city
I have won a bid (60K) on a Class C rental property (due to neighborhood and age of property) in Indianapolis. Neighborhood is a lower income working class and the property is a 2bed/1bath (~745sqf, and another 700sqf basement), all electric, built in early 1900 with average size backyard and very close to turnkey with some cosmetic repair. With current rent tenant (720$), 20% down with 3.875% rate I get ~150$ cash flow and COC of 8.2%.
Inspection is next week, but the current tenant mentioned that the last month electric bill was very large (300+, average is (50-120$), my concern is, could this be secondary to poor insulation, short or bad wiring, etc?
My other worry is finding the right tenant for this property.
I'm having second thoughts and I feel like I'm scaring myself out of this deal.
Please help out a newbie and give me your two cents. Also, if you have health with similar issues yourself and how you remedied it. Any help would be much appreciated.