Cashflow analysis stumping me

[Naveen Kumar]

I have been crunching numbers on a lot of properties and so-called-deals and not sure if I am missing something, or just not seeing it.

Purchase Price - 100,000

Loan Amount - 80,000 (@5%, 30-yr fixed conventional)

Rents for - 1250 per month

Here are the monthly expenses as I see it:

Mortgage - 430

Insurance - 33

Taxes - 110

Condo Fee - 250

PM - 125 (10%)

CapEx - 62.50 (5%)

Vacancy - 100 (8%)

Repairs - 62.50 (5%)

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Total Expenses - 1173 per month

Cashflow - $77 (approx)

CoC returns - 4.6%

People I talk to - realtors, sellers, lenders - they call these a great cashflow property, and I don't see how.

Am I off somewhere? Would you do this deal?  

Appreciate your input.