Analyze this deal - From bigger pockets

[Dave Kennedy]

If this is not kosher a mod can delete this post.

http://www.biggerpockets.com/properties/221

I just wanted to analyze a deal we can all look at. To me the deal is not a good investment from a cash flow stand point. Correct me if I am wrong but I would like to know why any investor would entertain its list price?

I'm not trying to bash the property would like to understand these deals.

I'm in no means good at evaluating these deals so feel free to chime in.

Rent = 7,400 mnth * 12 = 88,800 rental income / yr
88,800 * .5 = 44,400.

44,400/750,000 = 5.9% Cap.

Assume 20% down 150k, 30 yrs, 6.5%. = 3,792 mnthly payments

44,400 annual income - 45,508 debt service = -1,108 (loss in year 1)

Hardly impressive. But I guess it being in the Miami market a 6 cap is reasonable?

Certainly not a cash flowing property or am I way off here?

Whats the most you'd pay for it?