I think your rents are optimistic and you will pay with higher vacancy and poorer tenant quality (trashed units) unless you are in a more desirable area.I think a bigger question for yourself is do you want to deal with the type of tenants that come with this property and this area?

I'm optimistic.  

Then subtract a little, cause agents are always a little too optimistic :)Also - a warning - I would be cautious about starting your first flip with something that's not-normal.

If your mortgage, HOA, etc is 400 per month, and your expenses will be roughly half your gross rent, then you will clear $50 per month after everything is accounted for.So:Cash on Cash return=$600/year = 6% of your $10kAmortization of approx $200 per month in mortgage expenses = $2400/year = 24% of your $10kA more optimistic assumption would be $100 per month cash on cash since some of your expenses will be covered by your HOA fees.

My realtor sounds optimistic about working something out with the lender but I don't want to count my chickens.Anyone have experience with tricky short sale solutions like this?

I have this nagging feeling that I am being too optimistic on my numbers.2 family unit, first floor is 1 bedroom 1 bath, has access to basement. 2nd floor is 2 bedroom [1 bedroom plus renovated attic], with small balcony in the back.The whole house is ready to move in, the current owner did a great job, recently she lost her husband and lost heart in owning this house.Asking price is $65,000.This is a small town in PA, population had been stagnant in the last 10 years, only 2% growth.

I purchased my first property back in January. I waited to post until I had a good record of the utilities and expenses. The property is a 3000 sf side-by-side duplex built in 1985 near the university and hospital her...

It might be a bit optimistic to be able to raise the price $30k with no improvements.

The 25% vacancy seems a bit optimistic, though with an aggressive marketing campaign you might be able to do it.

Like you I'm an optimist as well....you know me, I'm the kind of guy that falls out of a twenty story building and half way down says, "So far So Good."