Deal or No Deal? it cash flows, Right?????!!!!!!!!!!!

[Jamal L.]

Owner is selling because she is up in age and wants to retire. 

Sale Price                   $25,000

Closing cost                $2,000

Total Acquisition        $27,000

It is currently occupied with tenant. Tenant exceeds rent requirements; and has no intentions on moving any time soon. Tenant makes over $100,000 a year (documentation to support) and likes the area because family is near. Tenant currently pays $950 a month ON TIME! Also pays own water as well as electric bill. I spoke to the tenant personally and she says she has no complaints. This property is in good condition and located in a C class neighborhood. 

• Gross income                  $11,400
•  Vacancy allowance         -$2,280

• Gross operating income   $9,120

• Taxes                                -$800
• Insurance                         -$1,200
• Maintenance                     -$700
• PropertyManagement      -$1,140

• Net operating income       $5,280 

• Net without PM                 $6,420

Did I miss anything? Do the numbers make sense to you? Would you buy this opportunity if you could? Feedback is monumental.  

[Henri Meli]

I don't understand why people are trying to figure out the tenant. The real question is what type of rent can this property in this neighborhood sustain? You can't make a decision on the deal, because of the current tenant of the house. Doesn't make sense long term. Also, what's your long term end game with this property? What's your exit strategy? Is it  a value add? is it s cash flow play with a quick exit? Tenant discussions are secondary, in my opinion.