With principal interest taxes and assessments, my total expenditures is $1700.

It makes more sense to have a reserve account that you add to monthly for larger expenditures.

I would be more concerned initially with your reserve for capital expenditures. 

If it's 15 years old and you replace it now instead of 5 years from now, then within 30 years, you are going to end up buying a whole extra ac unit which would effectively double your capital expenditures during that timeframe.

Now, you should budget what is left to account for future repairs, capital expenditures (roof, HVAC, etc.), vacancies, property management etc. 

A property may cash flow 8% - 14% with all cash but when you refi it and have it in a 30 year fixed mortgage leaving 10% of your own capital in the deal, your cash flow can jump into the 20% - 30% range depending on your rents, expenses and how you calculate vacancies and future capital expenditures.

Avaerge From my very conservative underwriting parameters, and with limited capital expenditures i'm coming with a present value of around $730-775K for the property.With 32 x $450 X 12 x .5 x 10 = $864K which is much closer to the list price. 

This would allow you to pay your monthly mortgage and cash flow more than enough (even put some aside for the future expenditures coming up). 

The one question that came to mind is this:  is the home really currently in shape to achieve the $1,700 of rental income with $0 in repairs, capital expenditures, etc? 

When we first started renting the property out in 2016, we made roughly $50 in cash flow (after accounting for 10% vacancy , 10% realtor fee, 10% maintenance, 10% capital expenditures, and 10% property management (paid to ourselves)).