I am new to BiggerPockets, but as a Credit Analyst I have the following thoughts:
First, if this is a pro forma then you need at least the trailing-12. This will give you a better indication of income and expenses.
For this analysis, without the trailing-12, generally I would base the expenses at 50%. This will bring you a annual cash flow to $8,297. Since you are not purchasing the property with all-cash, I would base my ROI on the return on equity ($35,000). Base on that, the ROI would be 23.7%, which i think is high and you need to check the numbers (again the trailing-12). I believe that either you do not have the correct financial information or you are getting a really good deal. I would definitely ask the buyer for clarifications and more financial information. To me, some numbers are not adding up here!
