Please evaluate this property (1st time doing this)

[Account Closed]

Hello,

  I'm starting to practice analyzing deals and I was curious what you all thought of this listing...  The strategy would be to buy and hold/

For the sake of evaluation, let's say that Mount Vernon is a C- to B- neighborhood.  

https://www.realtor.com/realestateandhomes-detail/...

3BR 2 Bath SFR (1602 sqft) in Mount Vernon, Ohio

1 Car Garage

Listing Price $74,900

Average Rent per Rentometer $850

Taxes in 2017 $1210

Insurance (estimate) $250/year

My thoughts are that the monthly payment will be around $430 if I put 15k down on the listed price. 

This would leave me with a $210/month cash flow after the 50% rule.  This doesn't take into consideration vacancy and capital expense.  I'm not really sure what the cap ex would be but, to be conservative I'd put the vacancy at 10% ($85) and that takes my monthly cash flow down to $125.  

Also, does Capital expense come into play if you are still working an FT job and able to save a substantial amount each month?

Again, this is the first time I've practiced looking at a deal and I'm NOT buying this place.  I'd love to hear your feedback!!

[Storm S.]

How you should be underwriting capex is take each major item like the hvac and calculate its useful life and how much it costs divide how much it costs be the number of months of its useful life left and that’s how much you should be saving for that item do that for every capex and the sum them out for your total capex per month you should be setting aside. Or you can look into home warranty insurance