Trial Run - Testing the numbers.

[Christopher Gray]

Whadup BiggerPockets!

I'm new to REI so I have been doing intensive research about what niche I should focus on to the different investment strategies as well as what kind of properties to invest in. Let me reiterate, I am VERY new to the lingo and aspects of REI (Today I literally just figured out how financing works so my understanding is still very vague.) Nonetheless I am open to all comments and opinions, criticism and feedback!

My questions are does my investment plan sound reasonable? and what can I add to my "potential investment analysis" when looking at properties online?

(My backstory/situation click here: http://www.biggerpockets.com/forums/55/topics/1750... )

Investment plan: After initial research (with plans to do much much more research) I narrowed down the strategies to buy&hold and house flipping. I would buy and hold a single family property and generate cash flow from tenants. After accumulating cash flow over time, I would use the capital gained to finance house flipping. 

I found a foreclosed townhouse in my area on zillow.com and here are the numbers:

Action starting at $80,000 | 3 bed. 2.5 baths. 1612sqft

Financing : 1% down payment with a 30 year fixed mortgage( So that would be $800 down)

If i was able to close this deal and rent it out for $1200 per month, I calculated my cash flow to be roughly 300 per month( less PMI of 1.5%, utility expenses, ect) 

My numbers could be off give or take a couple of 100 dollars. I'm sure my calculations don't include other expenses involved in the process (only because I have no knowledge of them and I am still learning about it all) I honestly wasn't trying to be exact, I am just trying to understand the basic concept of potential property analysis.

As always, I am open to all comments and opinions, criticism and feedback! Please let me know what I should do different, any advice you would be willing to give and any factors I need to add to my calculations 

By the way I am 20 years old and a full time college student, which is the reason why my down payment was horribly low lol. 

Thanks in advance!