My first RE purchase... What am I missing?

[Jai Lim]

Hi BP. I'm looking to put in an offer soon on my first property and the numbers seem really good... am I missing something in the calculations? Is there something I haven't thought of? Any help is really appreciated.

Property is on market for $170K, single family residence.

I found a mortgage that requires 15% down but am using 20% down in my calculations.

It needs a rehab, I'm estimating $20-30K, using 25K in my calculations.

Similar homes in this neighborhood average around $250k.

Rentometer.com says average rent is $1700, I used $1500 for my calculations.

I included monthly expenditures: Mortgage $676, vacancy $150, Property Tax $125, Insurance $67, maintenance cost $84, misc cost $17. This gives me a cash flow of $380/month and cash on cash return of about 13.5%.

After rehab, rent it out and pull my initial investment out with a refi or HELOC (will need advice on this as well). Even at a lower than average monthly rent it seems like a really good deal to me. Is there something I am forgetting or missing?