SFR Analysis

[Fred Shandler]

Asking: $30,900 (assessed for 38K)
Taxes: $1,799
Currently rent: $750

The 2% rule works: 2% of 30,900 = $618

However: at 6.5% my payments would break down as follows:

P&I: $195
Taxes & Insurance: $233
(I estimated 1K for insurance, is this fairly accurate)?

Total Payment: $429

Operating expenses: $375 ($750/2)

Cash flow: -54

Are my calculations correct, specifically assuming 1k for insurance?

I calculated the MOST I could pay would be 20K

P&I: $126
Taxes & Insurance: $233

Total Payment: $360

Operating expenses: $375 ($750/2)

Cash flow: +$15

What are your thoughts, is cash flow too close to operating expenses? Would you offer less (although anything less is close to 50% of the original asking price, is that an unrealistic? offer).

Thanks!
Fred