Deal analysis on a property handed down to me.

[Juan M Restrepo]

Hello Guys, My name is Juan Restrepo and I am a newbie real estate investor. I am trying to figure out what to do with a property that was handed down to me. My dad left to retire in Colombia. He left a SFH for me and my sister ( we are both on the deed). My sister has a house of her own and is struggling to pay it. I recommended a refinance so she can take her equity and I can take her out the deed and keep the house as a rental. That is one option the other one is selling the house since we have own it for more than 2 years and we will not be responsible for tax. I just wanted some advice to see if should keep it or sell it.

Here is the info: 

Location: 6360 Wilmington Way, Flowery Branch, Ga

Sale Price: $220,000 to 230,000 I got those values looking at the tax records of houses in my neighborhood that sold less than 4 months ago.  

1. Expenses in the month and yearly basis ( The new amount represents the amount after refinancing and I am the only on the deed). 
   1. New Loan: $719 with a 4.5% and a $142,000 total loan value.
   2. Property tax: $147
   3. Insurance: $135
   4. Cap Ex (5% or rent): $75
   5. Maintenance(5% of rent): $75
   6. Vacancy (5% of rent): $75
   7. Lawn Care: assign to the renters.
   8. HOA fees: $350 per year
2. Profit in the month and yearly basis
   1. Rent money: $1500
      1. I got his value using realtor estimate, rentometer and comparing comps.
   2. Average yearly appreciation: 9.8 % = $ 22,148 per year for 2018 for the 3 years before. 
3. Net profit without equity in month and yearly basis
   1. monthly basis : $274 , yearly: $2938
4. Net profit with equity in the yearly basis, mortgage payoff and tax depreciation.
   1. $2938 + $13,000 + 1068 + 8218 = $25464

• I did not include property  management fees.
• HVAC unit is 18 years old.
• I felt like I was not conservative with the maintenance, capex and vacancy expenses
• Does not meet 1 % rule is only .68%
• Does meet the 50% rule but I only have $ 31 free

Sorry about the long post. Do you guys have any advice you can give me? 

Thank you for help.