Things to think include the mortgage but also repairs/maintenance, capital expenditures, taxes, insurance, and utility costs to rent out the property.

Principal & Interest on the mortgage, Taxes, Insurance, Property Management, Maintenance, Capital Expenditures and Utilties (if you have to pay them).Looking at these numbers monthly and annually will help give you an idea of what you could pay for the property.MikeOak Tree Real Estate, LLC

Hey Colin, from the numbers it looks like a great deal, don't forget about getting aside repairs, vacancy, and capital expenditures

That being said, I believe whenever you buy residential real estate you need to make sure you are covering all the true expenses including capital expenditure and regular repair and maintenance.

Purchasing for 474k with 3.5% FHA looks like 2k/mo Principal and Interest payment, and ~$300/mo for the insurance and taxes.Don't forget to account for vacancy, capital expenditures (water heaters, washer/dryers, roof, etc.), repairs/maintenance.I would also advise to put Property Management and Landscaping cost into your number when evaluating.

So no rehab, no insurance, nothing you wouldn't want your landlord benefiting from your capital expenditure.

Even if they are famaliar with cap rates and roughly how to calculate NOI, they do not exclude or put below the line capital expenditures and other non regular expenses. 

Do your cash flow numbers adequately account for repairs and larger capital expenditures?

And, as new builds, maintenance should be minimal and capital expenditures practically non-existent (though I'd still save for them). 

The only place this can bite you is with Capital Expenditures that need to be amortized.