First time invetstor, single family home expense question

[Drew T.]

Hello all and thanks in advance. I've posted on another forum, not necessarily a forum for REI though and got mixed answers. I've done some research but also get mixed answers, so please set me straight.

I've researched a single family home, rental property in my town. It's currently being rented for $1125 by the landlord and admittedly he says rent should be closer to $1200, which is what the market bears he said and from what I've seen, would agree.

I've reviewed the following expenses. $56.25 (5% vacancy rate exp), $112.50(maintenance) $70.42 (ins.), $120 (taxes). Total expenses $359.17 or ~32% of rent. I didn't include utilities because they are charged to the renter.

From what I've read, the rule of thumb is between 45-50% expense of rent. What am I missing here? Am I underestimating vacancy (landlord has had 15 properties in this town for 25+ years and says his vacancy averages around 5% or less) or maintenance?