Is my math off? Struggling to find any deals

[Joshua Udermann]

I have been following the market in Salem, Silverton, Woodburn, Mt. Angel for about a year now.  Every property that comes up I run the numbers and I can never make the math work.  I did put in an offer on 1 property but lost to an all-cash offer.  There have been 2-3 other deals that I have liked but they all have required all cash deals..

I'm looking for single family 3-bedroom homes.
Rent estimate for the most part is going to be right around $450 per room or $1350 total for the basic entry level market home.

These entry level homes are ~$135,000 and most look to be requiring significant updates. 

For a $135,000 home, with 3.5% down.

P&I: 654

Tax: checking assessors office and most are $150-$200 per month

Insurance: $100

PMI: $106

CapEx (5%): $70

Prop man. (9%): $126

Repairs (5%): $70

Vacancy (5%): $70

Total Expenses: $1346-$1396

For a 'good deal' I would need to purchase closer to $120,000, reducing P&I and PMI by $84/month, which would be enough for positive cash flow.

Any thoughts?  Do I just need to save longer to make a higher downpayment?  My strategy is to househack, but the numbers need to work for when I move out.