Need Help Analyzing Correctly

[Hardik Patel]

Most of the DECENT properties I see have similar numbers. So finally, I need to ask for help and understand how is it that buyers are seeing a positive cashflow in these deals, is it something wrong with my calculations?

Here is a sample property that went into contract within 3-days, (please do look at the listing and details provided on the listing):

https://www.redfin.com/TX/McKinney/2412-Lakeview-C...

Purchase Price: 340,000

Cash to close: 75,000 (est. at 20% down+closing)

Annual Rent: 23,100 (975+950 x 12)

Operating Exp: 5,813 (which I don't think is right because just the 3% tax in TX would be at $10,200+insurance+utilities+maintanance+ppty mgmt. So more like 14,400 annually.

Net Opening Income: 8,700 (23,100 - 14,400)

CAP: 2.6%

Mortgage (P+I only): 16,536 

Net Income: -7,836

COC return: -10.4%

Please correct where I am wrong so I can learn to analyze correctly. How is the ever a good deal and why would someone buy it? Thanks!