I just saw this property that's a fairly low price for the area it's in. A nice neighborhood in a city with a lot of less "nice" areas. It's a 2 bedroom, one bath that fits the 1% rule for rental pricing, but the investment calculator is giving me a negative cash flow estimate. I figured I'd at least break even? I was wondering if anyone could help me to know if I'm being to conservative with my estimates.
Cost: 150,000 w/ 20% down.
Rental income: 1,500
Mortgage: 662/month
taxes: 143/month
insurance: 52/month
Rental Management: 150/month
Maintenance: 375/month
CapEx: 375/month
Vacancy per month (10%): $150/month, 1,800/year
Vacancy per month (10%): $150/month, 1,800/year
I used the 50% rule for maintenance/capex. This puts me at $1,906 total expenses per month. Does that track? Or am I overestimating something?