Rental investments: I don't see the math working out

[Irwin Haddox]

All,

I cant understand the math behind the rental investments even though I would love to get started in it. Where I am from (Delaware) a 3 bed 2 bath can rent for 850 a month. If I find an amazing deal and it costs only $65,000 for the property and I do the cap rate its around 1 percent. My expenses eat up the profit I would love to make 250 in profit but I cant see it working out. This is the scenario i am struggling with. 

cost of property: $65,000

income:  $850/mo

Monthly Expenses: 

Property management $85

Vacancies:  $60

Maintenance: $85

Capital Expenditures: $150

Property Taxes: $125

Mortgage: $220

Eviction: $65

So I end up with 60 dollars per month in profit........ This does not even include any HOA, tenant screening costs from property management, liability insurance, etc. Am i doing something wrong? Does anyone expect to find a class C or B home for under 65K that wont have a huge cap ex? Why are people making significant profits while still paying mortgage on properties? I am interested in the BRRR strategy but this does not make sense unless you remove the eviction cost after the first year or so and raise the rent by 75 dollars. Even then the cap rate is still low and I cant break 200 profit.

-Irwin