Advice regarding a recent buy

[Souji Kumar]

Hello Biggerpocket, 

This platform has been very helpful in increasing my insight into real estate and really appreciate everyone's input.

I am almost end of the process of buying a property in Houston.

Purchase price :154k, 2007 built, 2160 sq feet, decent school ratings.

May rent for $1395

20% down

Cash flow after all expenses PITI, management 8%, vacancies 5%, repairs 5%, leasing 1/2 month rent per year- will be around $60.

Was it a good buy with so low cash flow. Any advice for future buying and is it still good to buy anything in Texas! 

All inputs highly appreciated 

[Ryan Detig]

@Souji Kumar  I invest 2 hours outside of Houston and I would say that cashflow is a little low for me.  A 2.3% return on your downpayment is not too good.  I also think that your estimated 5% vacancies and 5% repairs are a little low.  I estimate 10% vacancy and 12% repairs/capex.  Personally from what info you have given me, I would not buy this property.  I could purchase 2 properties for 154k and both of them would easily rent for $1,250 a month.  I would double check your numbers and make sure you are not buying a negatively cash flowing property because with the info you gave me it looks like it will be close.