First time analyzing a deal. [Requesting feedback]

[Nigel Boles]

Hello again BP members.

My name is Nigel and I'm super new to Real estate. So please be gentle.

I believe I found a nice deal on a rental house in HOUSTON,TX. I was crunching the numbers following Brandon Turner's "Four Square" method found here and would appreciate it if someone could go over my report on this one house. I really do feel like i'm missing something important and i'd like to know where i stand on this very new concept of real estate before continuing and purchasing the house.

Cash flow

• House listing price : $135,000
• Rent price : $1300
• Cash flow : $301.34
• Annual Cash Flow : $3616.08

Additional fee's

• Taxes : $2336 -$194.66/m
• Insurance : Estimate of $200/m
• Property Management: Quote of $90 per house 
• Lawn/Electric/Utilities - Tenant paid
• Rehab : $0 No rehab
• Mortgage: $514
• Total monthly expenses : $998.66

Cash On Cash Return Investment 

• Down payment : $27,000
• Closing Cost : $3000
• Rehab : $0
• Total Investment : $30,000
• COC ROI : 12%

So here is what I've came up with. I'd like to think this is a good deal and a good start to a newbie. So if any of you could look over these numbers and correct me where I am wrong I'd really appreciate your help! Again, I'm still new to this and very scared of starting off on the wrong foot. 

Thank you!

-Nigel.

[Soh Tanaka]

The insurance looks very high to me. Unless it's in a flood zone or something, you should be able to cut it in half at least. Also, is the house in super good condition? There's always something to fix, so rehab is rarely $0.

Just some thought.