The Would-be Slumlord

I'm currently reading Loop Holes of the Rich by Diane Kennedy (part of the Rich Dad Poor Dad series); in it is a form that helps assess if a rental property is worth purchasing. I used this formula to assess the property I purchased earlier this year in Horseheads, NY; here are my findings:


Down payment: $14,000
Closing costs: $3,668.59
Fix-up costs: $3,659.16
Holding costs: $1731.00 (average 3 months mortgage)
Total invested: $23,058.75

Down payment: $1,050 (from tenant)
Total cash flow in: $1,050 (monthly)

Mortgage: $577
Property management: $125
Repairs: $52
Other: $50 (water and sewage)
Total cash flow out: $804 (monthly)

Cash-on-cash ratio:
$1,050 - $804 / $23,058.75 - $1,050 = 0.01
I am currently making a 1% return on this property.

Payback:
$23,058.75 - $1,050 / $1,050 - $804 = 89.5 months
It will take me 7.5 years to break even on my initial investment.

However:
This calculation doesn't take into account the amount of time I lived on the property and the money I saved from not paying rent.
8 (months) * $500 = $4,000
If I stayed true to my original intentions of living in "Corning" for ~2 years, then this investment would be sound; now, it seems to have been a mistake.

Some Positives:
Current cash flow is positive.
Will gain ~$3,000 annually in equity.
New Super Walmart & Kohl's to be built near home; literally 5 minutes away.
Interstate 86 is almost complete.
High school right across the street.
Was a small investment.

Some Negatives:
Hard to manage being so far away; even with a property manager.
Getting the right tenants; fickle tenants could mean bad things.
'No growth' area; I will be lucky if the property value rises with inflation.
Selling now would equal loss.

I am not going to do anything with it now; I hope and pray that Horseheads, NY will be the next Las Vegas, the next Phoenix, the next 'anywhere in California'... it is always good to have dreams, regardless of unlikeliness.