Deal Analysis - Newbie trying to get their feet wet and not drown

[Sagar Naik]

First off, hello everyone and than you for your comments, feedback and time in advance.  I am a new investor from Georgia with about $55k liquid cash trying to primarily get into the buy, rent and hold market.  I would like to be a higher risk, but being a newb at all this I would prefer to get into a ready to rent type of deal.  On that note, here are the numbers I came up with on a town home built in 2007 in zip code 30101:

Listed Price $160K (Close to ARV - maybe 10k less)

Expected income (Rent) : $1300 (I have gone on the lower end. Similar properties rent for$1400-$1700) $15600/Year

Expenses:

Taxes $100.00 

Insurance $65.00 

Flood Insurance 

Vacancy (7%) $91.00 

Repairs (5%) $65.00 

Capital Expenditure (10%) $130.00 

Water - Included in HOA

Sewer - Included in HOA

Garbage - Tenant

Gas - Tenant

Electricity - Tenant

HOA Fees $140.00 (Includes water and cable TV)

Lawn Care $0.00 

Property Management (10%) $140.00 

Mortgage $414.00

Total Monthly Expenses - $1155 (Yearly - $13860)

The Math:

Down Payment (25% Calculating Higher) - $37500

Closing Costs (3%) - $6000

Rehab: None needed

Total Out Of Pocket: $43500

Cash Flow: $1980

CoCROI: 4.5%

The low-down

There are multiple areas I have under/over estimated. I most likely can get $1500 rent if not more as the property is a higher end unit in a gated community, the property is in excellent condition with all new appliances and I don't anticipate any repairs (I do have an extra$7500 cash reserve if needed).  I realize this is a low CoCROI, but with $1500 rent I'm looking closer to 9%.  My main concern is, am I missing anything or should I keep looking.   Similar properties in this price range have lower end finishes (no granite, no stainless steel appliances, no hardwoods etc).

Thanks y'all!