please help analyze this deal

[Marci Stein]

House costs $55,000---needs a new roof and some sheetrocking, gutters and paint 

(approx 14,00-$20,000) . . Taxes are 5,500 a year and insurance may be another 

$50 a month. Average rent in that area is $1,100- 1200 a month.

Does this sound like a good deal?

one of the things i like is that it is under 1 hour away  from where i live, and in a 

desireable neighborhood, but those taxes may be a dealbreaker--

your thoughts much appreciated! .   

[Ryan Mullin]

assuming: 

75k all in..  

1200 rent 

10% for property management 

10% vacancy 

50/month for insurance 

This comes out to a 6.5% cap rate.     If the taxes were half that it would be a 10% cap rate deal.     Taxes can kill your cash flow...