Running the numbers for a property
I am trying to run some numbers on different properties and I don't know if I am running these numbers correctly. For example this particular house costs 59900 and rents for 1000 in Cleveland, which is 1.6% of the purchase price, yet it barely cash flows. Am I calculating something wrong?
tax 2367.5
ins 1200
lawn 504
property management 10% 1000
repairs and maint 10% 1000
capex 5% 500
vacancies 5% 500
sewer water garbage 1300
principal and interest 2892
TOTAL = 11163.5
If the property management group takes 1st month rent then for the year the house will make 11k which makes this even cash flow negative. Is something wrong with my calculations?
Most Popular Reply
@Denis David your numbers are very wrong. Start by calculating a per month basis. It looks like you’re mixing annual cost and month cost.