Townhouse in Cy-fair, Houston area

[Bharath Raj]

Hi...

I am new to this forum. This is my first ever rental buy, but I plan to do more in the future.

I wanted to run this by you guys and see what you think.

I am looking at a townhouse in Cy-Fair area in Houston, TX. 

Buying price: $108500   Listing price: $115000

Sq Ft: 1417

Built: 2004

I am paying cash for the purchase.

Expected rent: $1200 to $1300

Insurance: $100

Property tax: $230

HOA: $150

Repairs: $130 (10%)

Property management: $130 (10%)

Vacancy: $130 (10%)

Total expenses: $870/month

Cash flow: $470 to $570

The inspection report was good. It mentioned that one of the pipes leading up to the water heater was corroded and needed replacing. Everything else came out fine.

Do my assumptions look okay or am I missing something, considering that this is a townhome? 

Thanks,

Raj