Need help with Houston SFN by and hold case study

[Haider Alazzawi]

Hello, 

I am trying to start investing in RE in Houston Metro area. Specifically SFHs buy and hold. I am trying to analyze deals and make sense of the numbers. Here is an example: 

SFH property listed for 135k that need little rehab it is on Embarcadero Houston, TX 77082. it is 1800sf 3 BR and 1.5 bathrooms.

the numbers are:

P and I 562 (based on 30 years loan and interest rate 4.5)

HOA 14

Taxes 314 

insurance 90

so this come to $980 and not taking into consideration PM, vacancies, CAPeX, flood insurance.  Let us assume this house will rent for 1200-1300 a month. Will all the unaccounted expenses this deal does not make sense to me. Am I missing something here in terms of calculations or logic? 

looking to hear from you if you are familiar with the area. 

Thanks 

Haider