Rental Property Analysis

[Michael D'Alessandro]

Hello BP Community, I hope everyone is doing well and staying safe! 

I wanted to get some of your feedback/suggestions on my struggles when analyzing deals in my area. I became a PRO Member this morning and have analyzing some deals as practice. I live in the suburbs of Philadelphia, PA and I have my RE License so I was able to set my girlfriend and myself up on listing alerts for single family homes in our area. 

Granted these listings are on the MLS, so I understand that you won't consistently or easily find slam dunks. However, when running the numbers, what I am realizing is that the TAXES are diminishing the cash flow and in turn are reducing the Cash on Cash Returns. To provide some context, I came across a listing below $130k and estimated rents of $1,300-$1,400. At first glance, I thought this was be a solid deal, but after accounting for the standard expenses, the Cash on Cash Return was roughly 6% and the taxes are almost $5k/yr. I realize I could always make a lower offer to enhance the returns. Can anyone relate?

Sorry for the long winded post. Any feedback, advice, or suggestions would be greatly appreciated! Maybe I just need some encouragement and patience LOL. Thank you in advance!!!

Best,

Mike