Am I doing it wrong?

[Account Closed]

I've been analyzing 10+ deals (SFR and Duplex) a day for about a month - mostly MLS, but I've also hooked up with a few of the wholesale firms in the area. I've actually walked about 5 properties, but have only offered on 1... the offer was rejected.

I think I'm getting a pretty good idea of what it's going to take to get into a rental property, but like most of the BP community, I'm struggling to find a property that looks as though it will cash flow without putting more than 25% down (which isn't "true" cash flow). I'm looking mostly at properties I can try to build equity into through rehab (hopefully to BRRRR).

Here are the details on the one I made an offer for:

Source: MLS 100+ days. Property is vacant; Owner in a nursing home; kids trying to sell it

3 Beds, 2 baths, 1315 sqft

Original LP: 165k

Current LP: 155k

ARV: 170k+ 

Estimated Rehab: (moderate/high) $18/foot = 24k

It's in pretty rough shape.  It's very outdated; there's a garage conversion for half of a 2-car garage that was poorly executed; kitchen/bathrooms need new countertops, tubs, appliances; flooring basically throughout

Rents: 1300-1500 (trying to get to the higher end with my rehab==1450)

Monthly Expenses: 756

PM: 182

Taxes: 210

Vacancy: 112

Repairs/Maint: 70

CapEx: 70

Insurance: 112

Max Mortgage Payment: I used all these costs, with my hope to cash flow at least $100/month to back into what I should offer for the property (not considering CCR yet), with a 20% down payment. This would allow me to have a maximum of a 90.7k note (offering 113k), so the P/I payment would be $544.

NOI: 1400-544-756 = $100/month

I offered 110k (which is roughly 75% of ARV-Rehab), and what I thought was pretty fair considering the work that would need to go into the rehab. This would allow me to get into the property for a fair price, but also allow me to cash flow. The offer was simply rejected.

From this analysis, do you guys think I'm doing something wrong or missing something, or am I following the right steps and just haven't found a good deal yet?