More single family home return questions from the new guy.

[Tracy Thompson]

We are brand new to all of this and are hoping for some more advice and feedback. We located a two bedroom, one bathroom 832 square foot ranch SFH with a full unfinished basement and large one car garage in a very nice neighborhood on a large corner lot. The purchase price would be $73,000, the current rent is $850, insurance is $900 annually and taxes are $1300 annually. Similar homes are selling from $85,000 and up. After some rough calculations and assuming that we refinance at 4.7% and hold onto it for thirty years as well as plan on a five percent vacancy rate, it looks like the monthly cash flow would start at approximately $220 with well over a 12% plus average return over a full 30 year period. If we purchase this home, the next time that it is vacant, we would plan on investing about $3,000 - $4,000 for new carpet, paint, etc... Are we overlooking anything or should we pass on another one? Thank you, Tracy and Amy.