Analyzing For The First Time

[Mark Smith]

I am brand new to looking at properties, and honestly I don't have any idea of what is a good deal and what is not.  I have done a lot of reading, and I'm now applying the 2% rule and using 80% of the asking price as a general rule for the purchase amount.  I just want to make sure I am doing this analysis correctly, so here is a real world example:

I thought it would be easiest to just drop the link to a house here instead of listing all of the details:  http://www.realtor.com/realestateandhomes-detail/1...

Keep in mind I am not actually looking to purchase this house, I just want to hone my analysis skills!

Asking price is $139,000, so using 80% as a general rule that makes the purchase price $111,200.

Next, applying the 2% rule, that tells me total rent income should be $2,224.

The information in the listing says they are currently receiving a total of $1,800 in rental income.  Is this a really quick way to see that I shouldn't look at this property anymore?  What other factors should I consider here?  Of course there would be some costs that need to be added into the purchase price (repairs, updates, etc.), so that makes the analysis look even worse.  Also, the house is 115 years old!  I would be concerned about the place needing major repairs, unless there have already been updates of course.

What other things should I be looking at?