Am I missing anything glaringly? 

You certainly don't want to miss out on a spot that you and your wife could envision as a forever home.

If you're missing one of those things, it might go up to 10.5% and 2.5, and so on.

He would have to miss a few payments before considering this.

Essentially is as follows:New Lease Fee (one month’s rent) + Expected Missed Rent + “Refresh” Cash(Refresh Cash = the amount out of pocket to prepare the property for new tenants, after tenant deposit is spent)It looks like this:(A/B)+(A*C / B)+(D/B)Where:A = New lease fee (1 month's rent) ($1,000)B = # of Months in lease (24)C = Expected # of months vacant in-between tenants (1.5)D = “Refresh” Cash ($500)In this example:($1,000/24) + ($1,000 * 1.5 / 24) + ($500/24)Which is:41.67 + 62.5 + 21 = $125    which is 13% of monthly rent in this scenarioThe equation allows me to make a judgement call in many different scenarios.

Am I missing any other costs that might make this deal not worth it?

In case you missed the first two posts of my little Stockton Analyses "Series", here are the links:Part 1: Where have all the flowers gone - On over-rehabbed, overpriced properties:Part 2: Straight Outta Stockton – On properties in, let’s call them...

Am I missing something?

@Or YegerThere are actually some missing details that affects the answer to your question.  

Hello so there's this property that I would like to acquire but I want to know if I'm wasting my time reaching out to them or is there a possibility that I could make money on this.ARV: $500,000Rehab: ~$33,500 (probably cosmetics but did 15*square ft just for an estimate)Acquisition price: $390,000 (that's how much they owe on their mortgage)Estimated Costs: ~$47,800My AOC: $10kPossible Profit for Fix N Flipper: $44,400Are my calculations sound or is there something I'm missing?