3/1 SFR Foreclosure Analysis

[Mark S.]

Asking Price: $54,900
3BR / 1BA, 1,000 sq ft, built 1966.

Rent: $750/mo

Financing / P&I
Purchase Price (ultra-conservative): $54,900
20% down: $10,980
80% financed at 5.00% over 30 years - P&I: $235/mo

Expenses
10% Vacancy: $75/mo
10% Prop Mgmt: $75/mo
10% Maint Reserves: $75/mo
Taxes: $81/mo (based on assessed value ~$30K higher than purchase price)
Insurance: $60/mo (estimated)
Advertising: $8/mo (will mostly use free web-based media)
Total Expenses: $374/mo

Cashflow to the face: ~$141/mo.

Looks good to me. Coincides almost perfectly with 50% rule. 1.32 is not quite up to the 2% rule standard, but oh well.

What do you guys think?