Am I missing something????

[Ashley McGrath]

Hey BP people. About to get this under contract. I've ran the number a million ways but maybe there's something I'm not factoring in. 

I'm buying a single family 3 bedroom with a finished basement that was used as an illegal apartment. There are two bedrooms in the basement as well but I'm just calling it a "finished basement" as I'm not going to illegally rent a second apartment. 

Anyway, I'll have 4K total cash in on the deal. Purchasing house for 130k ARV is 160-165. Estimating 10k in rehab which I'm taking a personal loan for.

Together with the mortgage including taxes, insurance, and my rehab loan payment I'll be at $1,074 a month. I plan on renting for $1800. I did my math factoring 10% vacancy, 5% misc, 7% maintenance. Water/sewer is $45 a month and a $10 a month advertising budget. 

This gives me an NOI of $16,188. Cashflow of $3,300

84% ROI

CAP 12.45%

After 5 years when the rehab loan is paid I'll cashflow an additional $200 a month.

Is this too good to be true? Am I missing something?