Is this a Deal or a Dud?

[Stan Sims]

First post...here goes!

I'm looking at a single family property as a rental which I'd then try to wholesale but before I pull the trigger I wanted to reach out to the BiggerPockets community.  The property, not in a warzone but no picket fences either, has fire damage and the estimated repairs are around $17K-$20K.  It was renting at $400/month though fixed up it could fetch as much as $500/month.  For retail purposes, houses in the area are worth around $40K-$50K. This one in particular is probably in the low 40s.  The asking price was $10K but I've negotiated down to $7K though my gut tells me to not pay more than $5K.  

Going with the 1% rule of thumb for monthly rent seems to work out based on the property value. Based on the 50% NOI rule of thumb, $250 is left over to cover borrowed money and cash flow assuming $500 in rent. Ideally, I'd like to pass on $100/month cash to an end buyer which leaves $150 to cover borrowed money.

Let's say an end buyer is borrowing (private/hard money) for the purchase price, repairs, and wholesale fee.  If I'm targeting $5K as a wholesale fee on this property, my end buyer is looking at a total price of $32K.  Assuming an end buyer can get 8 percent for 30 years, the monthly payment is around $235 which will instead leave about $15/month cash flow.  If no private or hard money is involved in the purchase price or wholesale fee then they are at $20K (repairs only) which is about a $150 monthly payment leaving the desired cash flow for the end buyer.   

So my questions are...

• How does this analysis look?  
• Am I missing anything glaring?
• Does this look like a deal or a dud?
• Am I being too picky on the $100 desired cash flow?
• Am I being too greedy wanting to get the property at $5K or is $7K look good enough?

Thanks in advance for your help!

-Stan