I personally would not move forward with this deal as the ROI is too low, you could make more in a savings account with that type of cash. Also no repair costs I think is pretty unlikely I like to budget something just incase unless this is a brand new construction in which case you would not have any tenants in place and still incur operating expenses. Hope this helps!
Thanks for replying. I know the deal makes NO sense as it appears. My problem is with the the BP rental calculator. I have analyzed several deals using it and noticed the calculator has some issues. The analysis does not does not match the input info and therefore the deals NEVER make sense. It also does not allow for IO payments in the formula. If I break down deals long hand or with other apps, I get one number. If I analyze them with BP rental calc, they are always different even if I use the same assumptions BP uses. I was wondering if others were having the same issues.