How would you rate this deal?

[Steve S.]

1,300 sq located in Waco 3 bedroom 2.5 bath Built in 1965 Previous owner rehabbed it so its move in ready $120,000 Would rent for $1,100 Taxes 2.8%

[Karen O.]

Assumptions:

Purchase:  120K Cash

Monthly rent inc: $1100

RE Tax: 2.8% of $120K = approx $3400 >> $285/mo (might be high)

Insurance = $100 

Vacancy @ 5% = $55

R & M @ 5% = $55

CapEx @ 8% = $88

Property Manager @ 8% = $88

Total Expenses: $671/mo = $8052

Net Cash Flow:  $429/mo = $5148/yr

Cash on Cash = 4.3% (COC goes to 5.17% if no property manager.) This is better than the bank, but most investors want a higher CoC.

With $30K down, a $90K mtge @ 4% your cash flow would be $0.  Also no good.  

What'd you get?