Need help analyzing deal in Orange County Area

[Jason W.]

Hello, I am a novice real estate investor and looking for some feedbacks for this current SFH deal in Orange County, California area.

• Purchase price - $815000, 20% down
• The property has one of the lowest price tags in the community.
• Will be used as a rental property after purchase.
• Cash on cash return ~ 1% per year.
• It's very difficult to get positive cash flow in this area.
• Rental Property Calculation

My hope is to wait for the property's value to increase since the comparables in the neighborhood are all above this price. 

[Aaron Norris]

I see you haven't left any room for vacancy or repairs. This is strictly a price increase play then? If it doesn't work in your favor and prices go down slightly, will you be OK with that? Are you in it for the long haul?

Big rentals can also come with HUGE repair bills when tenants exit. Example, if Yu had to replace the flooring in the house or paint, how much would that be?