Toilets, small roof leak, etcCapital Expenditures=Upgrades and large expenses.  

These are Capital Expenditures.

This requires you to know what your average monthly expenditure is but it is great.

It currently rents for $850, which is under market for this neighborhood (market is probably $950).With taxes, insurance, debt service, management expenses, 10% for maintenance, 10% for capital expenditures, and 10% figured in for vacancy, I'm calculating a current cash flow of $90 / month based on the $850 rent.I know that's not stellar, but here's why I like it:The neighborhood is one of those neighborhoods I really believe in -- it is minutes to downtown, and central to major redevelopment and transit projects in my city (Atlanta), and it may just be one of these hot neighborhoods that becomes one of the great places to live.Right now, this is the cheapest on-market property in the neighborhood -- the closest comps are in the 85-95K range, and several flips (not comps, but nicer houses on the same block) have sold in the $200K range in the past month.

I would add another 5-7% into your expenses for capital expenditures in addition to regular repair costs to be safe.I'm not seeing an appraised value in your numbers.

You can put your equity into a nicer neighborhood with better tenants and less capital expenditures (if you aren't already in a nice neighborhood) and also reduce your involvement by hiring a property management company.

8 percent for vacancy(national average) unless you know the actual vacancy rate for your area (which you should definitely learn), 10 percent for maintenance and 10 percent for capital expenditures.

Includes, tax, Insurance, Capital expenditures for stuff that needs to be repaired, monthly financing, any utilities that fall to a landlord like water or sewer (confirm any costs in that area) and a vacancy rate.Once you have all these numbers, you can work backward to your offer price based on the return you want to get on your investment. 

Operating expenses include utility, payroll, landscaping, pest control, taxes, insurance, repairs and maintenance to name a fewThese are expenses, different from capital expenditures such as fridges hot water heaters and flooring.  

Numbers looks good if no capital expenditure in near future like HVAC, plumbing, electric and all recently updated otherwise add 5-8% towards capex.