Calculating monthly cash flow

[Jon Dang]

Hello all, I am looking to get my first rental soon in the Houston area but I am having trouble finding + cash flow. I was hoping yall can review my calculations and assumptions. Also, I am trying to follow the 1% rule as well. The property I have found that have a + CF has like < 5% ROI. I would greatly appreciate any advice when evaluate a home. Thank you!

Rent: get from rentometer or craiglist

Expense : redfin payment calculator (principal and interest, insurance, taxes, HOA) + CAPEX (5% rent) + Repair (5%) + Vacancy (8%) + Property management (10%)

Cashflow: Rent - Expenses 

[Brian Mcmenamin]

@Jon Dang Be careful using redfin for insurance and taxes. I think those are the two numbers that can fluctuate once sale is complete. i'm not sure what section of Houston property is in, but insurance could be high. Your formula looks good to me. Good Luck