Trying to decide if this is not worth it (SFH rental)

[Chris M.]

I know for sure these numbers won't seem as great as a lot of the people who post on here (e.g. 42k purchase price, 1200/month rent...).

I'm looking at a 3bed/2bath for 160k with probably 30k of repairs/fixes/updates needed.  Fantastic local schools, parks.  After repair value would probably be 250k+.  It would be worth 100k more but it's on a busy street.  I'm expecting 1800/month rent, maybe more but again the busy street thing makes me question rental comps that aren't on a busy street.  I'd guess 2200-2300/month if it were one block in.  I'd be financing it myself with a home equity loan.  

Purchase: 160k

Fixup: 30k

Annual Interest Payment @ 3.5%: 6650

Insurance: 1000

Taxes: 5900 (I think there is a good chance I could appeal these down to about 4900 in time)

Annual Maintenance Allowance: $2000?  (1% of property?)

Assumed vacancy: 1/2 month

Expected rent: 1800

Income with 95% tenancy = 20700

Expenses + Expected Maintenance = 15550

Cash Flow= 5150 annually. 

The 5150 doesn't cover any of the loan principal.  I'm only required to pay interest so I could use this 5k to pay down the principal or do something else with it.  

This is the only thing I've seen in my neighborhood for some years that has come even close to the "1% rule". Most SFH that would sell for 300k rent for 2200 with 7000/year property tax where I live. So I'm thinking really hard about this one as it seems great compared to pretty much everything I look at, but overall I know it's nothing special compared more investor friendly states.