What do you think about this deal?

[Brett O]

I'm looking at a single family house that will rent for $550 per month. House is listed at $25,000. 3 bed 1.5 bath 1300 sq. ft.

If I pay the asking price and get a 30 year fixed @ 7% with 20% down, I'm looking at a $133/month mortgage payment.

I figure expenses will look something like this:

Mortgage payment - $133
Property tax - $200
Homeowners insurance - $50
Maintenance budget - $100
Vacancy budget - $50

So....

Rent - $550
Total expenses - $533
Cash Flow = $17

Can anyone advise me on a way to make the property cash flow $100 per month? Any tips?