How does this deal look?

[Gary Dale McKee]

3bd 1 1/2 bath, 1,600 square foot.

REO with asking price of $56,000

I want to offer $42,000 on the property.  It is in a good location and would make a great rental.

Rent $750

Taxes $65 

Insurance $60

Repairs 5% = $38

Vacancy 10%=$75

CapEx $100

Monthly expenses = $336

Mortgage for 10 year loan at 6% interest rate, with 10% down $444.08 for a grand total of $780.08.  I have used pretty conservative numbers.  It doesn't seem to work on paper, have I missed anything?