You want to use the more conservative rent number, plug all this in to the BP calculator and you will more than likely not pencil out when you put in a conservative 10% for property management, $ for reserves for repairs, maintenance, vacancy, etc.

otherwise let me be the first to say, RUN. do not buy this. ok with that out of the way, a few things you can adjust to give you a more realistic picture in the calculator. no matter what you'll always be spending some money on repairs when you first get into a place, so off the bat i would put a grand or two for estimated repairs. i run my vacancy numbers at 8% as this is just about a month. your capex should be lower, unless this place has some really big ticket items waiting to die. same with repairs. also the insurance numbers and property tax number both seem very high, is this the real numbers or just place holders?

Property management at $ 2,160 , Cap X at $ 1,000 , landscaping  at $600 , vacancy at 10 % for $ 2,160 .

We have a lot higher vacancies in rural areas.Your agent license, inspector, etc...

The only issue I see is that you haven't allotted anything for vacancy and maint. 

You need to include vacancy, utilities, repairs, CAPEX and management allocations.

. * Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)* Don't allow for your own independent property inspection* Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use      unrealistically low vacancy factors)* Require you to pay for any renovation upfront* Sell only in cheap. low end neighborhoods* Don't accurately represent the neighborhood/property classification* Don't have consistent rehab standards for all properties* Don't provide a scope of work for the property* Can't provide references of repeat investors* Require you to close before a tenant is in place

ie the 3% to 4% tucked away for vacancy, and repairs. 

Numbers below:Purchase Price: $70,000, Down payment: $14,000(20%) Rent: $850/mo or $10,200/yr Insurance: $1000/yr , Taxes: $2100/yr, HOA: $2500/yr, Mx/Mgmt/Vacancy/Capx: $1400 = $7,000/yr$10,200 - $7,000 = $3,200/yr cash flow if kept at $850 rent. 

It's imperative to consider expenses like vacancy, property tax, CapEx, maintenance, PM, and insurance.