First Rental Investment - Is it a deal?

[Elliot Larkin]

Living in Gainesville, Florida the 2% rule is not common at all these days. Here are the numbers for this home 3bed/1bath with nice shed, fenced in yard:

purchase price $60,000 CASH (seller pays closing)

square feet 1047

repairs: floors, HVAC, cabinets, painting ~$15,000

holding costs while rehab is completed: 500

Total investment: $75,500

monthly rent: 800   -    yearly rent: 9600

vacancy: 800

Maintenance and CapX fund: $1,600/annual

taxes: $1435/annual

insurance: $900/annual (is 75$/month a reasonable assumption)

I will manage the property

I am looking at annual cash inflow of $4,600

I recognize this return on equity is only %5.7. I am calculating a 7.5% cap rate and 6% yield on investment.

If I were to put 20% down and take out a loan including the repairs at ~4% interest, I would be looking at 12% return on equity. My partner wants to put down the cash and we are splitting 50/50 since they are family and helping me get started.

I am planning on buying and holding, perhaps selling if the market significantly increases. What am I missing? Any thoughts would be much appreciated!