Buy & Hold Sanity Check

[Gary Harrell]

It seems like every time I run numbers on a property for buy & hold that I can get to $100-$200 cash flow and 12% cash on cash ROI when I consider putting 20% down. I'm using the following assumptions too: 8% (1 month a year) vacancy, 8% repairs, 8% capex, 0 management fee, tenant pays all utilities. I don't feel like I am being overly optimistic on rents either...I'm looking at comparable homes in very close locations to my target properties, and I am picking the lowest end of the rent. I'm getting property tax numbers from Zillow, closing costs from my last loan (which were considerably more than what they're going to be on anything I'm looking at buying), interest rate higher than what I can get a loan for, even throwing in an additional grand for extra charges by the lender, no cap rate because this is a sfh, insurance estimate from Zillow, future assumptions in the calculator are 3%, 3%, 3%, and 6% respectively.

I'm looking at $50-$100K homes that I can rent for $700-$1200 or more. If I don't have to make any repairs, does it make sense that I am getting back the good return numbers I mentioned above? What could I be missing, or in this space, is it that easy to keep a couple hundred bucks each month? Have I lost my mind?