Please let me know if these numbers make sense as a good deal:Purchase Price:  $155kExpenses:Taxes:  3,439Insurance:  900Maintenance:  1,200Vacancy:  1,038Total Yearly Expenses:  $6,577Total Monthly:  $548Financing:$155k, 30 yrs, 5% = $832/monthExpenses + Debt = $1,380/monthIncome:  Property comes with tenants paying $1,500/monthCashFlow:  $120/monthNOI (without debt):  18,000 - 6,577 = $11,423Cap Rate:  11,423/155,000 = 7.37%  In this particular town, 7+% is very hard to come byI also believe the current rent is below market, and has potential to raise to 1550 or more.  

But, if there is a possibility of a short fall....HOA/other debts that can't be negotiated out with the bank ( the lender will only contribute a set %) you need to be prepared to pony up some extra money above and beyond the purchase price. 

In the state of Hawaii, I have a duty to mitigate my losses by re-listing the property once I have possession on Dec 13th.

Can you sell your house for total debt owed in the middle of short sale proceeding?

I do know at my quickly advancing age and many my age that have been through rentals these investors tend to gravitate in later years to debt instruments and other types of income producing investments that preclude rental income to tenants especically low end tenants.  

Given that you find a tenant that reliably pays $1200/mo, your NOI would be $871 less the debt service of $235/mo leaves a cashflow of $636/mo.Now, all this being said, there's a lot you've left out of your numbers.

Many new investors ignore the part of the equation that is debt pay down.  

You just increased your net worth by almost 50k, get additional monthly cashflow while your tenants are paying your self eliminating debt down and you enjoy some nice tax benefits.

While I didn't quit "working," I am now all in.I recently joined a highly respected Commercial Real Estate Debt & Equity boutique firm where I am brokering commercial real estate loans for Retail, Office, Industrial/Warehouse, NNN, Medical, Mixed Use, Multifamily, Development, etc.I'm so excited to finally be in with both feet.  

Signed,Beaten down and lost10 of those pays your basic expenses15 of those replaces your current incomeWhat ever you make in RE can go directly to your savings/investments so it starts to snow ball if you keep working.I'm not stopping till I have 1000 doors with no debt.