Is this right?

[Joe Finnegan]

Just doing a test run on my understanding of the "Rules of thumb" and math skills. Looked at a few properties today and it appears that a flip is more realistic than a rental for them.

REO List price $225,000
ARV $270,000
Needs $50,000 in rehab

As a flip analysis looks like:
$270k-$50k= $220k
$220 x .7 = $154,000 purchase price

As a rent:
Rent $1800/mo
Expenses: $900
Rehab: $50k
Mortgage: $800 ($100 pos cash flow assumption)
Required purchase price: $70,000