Is this a good deal?

[Rodney Swindle]

Hi! I've been studying on BP for awhile now, and I have my eyes set on a 4br 2ba 2000sqft SFH in northeast MS (close to where I live). Here are the ideal numbers/worst case scenario.

List price: 45000

Buy: 40000/45000

DP:1400/1575

Rehab: 2500/5000

After repair Value: 50000

Purchase cost: Inspection-280. Appraisal-300. Closing cost-3% total loan T=1780 

Gross rent:1200/800/m

Expense: Tax-1462/y. Property Management-10%. Maintenance-10%. Cap Ex-10%. Vacancy-10%. T=470/354

Cash: 5680/8505

NOI: 610/366

Mortgage: 207/233

Cash flow:403/133

Cap rate:18.3%/9.8

CoC: 85.1%/18.7%

ROI: 195%/3.1%

Any corrections in my math would be highly appreciated or some tips from anyone with experience in this area. Is there anything I'm missing? Would you be confident buying this home?

[Susan Maneck]

The after repair value does not seem that high in comparison to your purchase price, but the rental value seems good. Any chance you can do a cash purchase for maybe 30-35K? If so you can get it refinanced a year later with a Wells Fargo HELOC. I've found these are much cheaper for low end properties than a regular mortgage.