Having trouble Cash Flowing

[Blake Armstrong]

Hi guys, I've been trying to look for cash flow deals in DFW around $100K to $300K range, with a 2/2 or 3/2 turnkey. I've been running my numbers at a 6.99% rate, with 20% down, and 10% across the board for vacancy, capex, and maintenance. I've been using Redfin's estimate for property taxes and insurance, but have really found nothing that even comes close to breaking even. I've been reading that a lot of newbies are having the same kinds of issues, but I'll even run my rental income with the 1% rule just to see and I'm still in the red quite a bit. 

Am I overestimating an expense here? Is this just the norm right now? Any advice to point out if I'm doing something wrong or pivot to something else would be appreciated. 

[Moe Sidd]

Quote from @Blake Armstrong:

I should also point out that I'm estimating a 4% toward closing costs too.

 @Blake Armstrong,

With 20% down you might have a tough time cash flowing, maybe if you could put more down for a smaller spot? Here are some actual numbers I have on a 1 bed condo I have had for around 5 years. These are considering no mortgage or capex, but add in your numbers to this and see if you still end up in the red or green? Say the purchase price is $100,000

Rent: $1000

Taxes: $157 (both county and ISD combined per month)

Insurance: $94 (Travellers, im sure you could shop around and do a bit better)

HOA: $200 (includes pool maintenance, water, 1 covered parking spot, and exterior maintenance)

Cash Flow: $548

Another option for better cash flow would be going to Midwest in a city like Toledo, Ohio. You could still buy a SFH (2-3 bed) in a good area for around $100k and rent for $1000, but there will be no HOA, wayy less property taxes too, making it cash flow really well. Happy to dive into those numbers too if you like!