How to screen properties

[Mike Cahill]

I am a beginner investor and have begun screening some properties just to practice the proper analysis. Right now for screening purposes for SFH rentals I am looking to buy a property for $150,000 or less. I use the rent estimate for Zillow and then deduct the following estimated expenses (20% to cover vacancy, repairs, property mgt and then I also deduct RE taxes and insurance of course). I am finding a decent number of properties in the Trenton/Hamilton, NJ area that are producing monthly cash flow of $300 for an annual cash flow of $3,600. on a 25% down payment totaling $38,000 (for a $150,000 home) this produces a return a little shy of 10%. Is there anything else I should be considering when screening a deal? Would appreciate any feedback you have.