How much cash flow are you seeing per unit in Akron/Canton area?
In the near future I will be using an FHA loan with a low down payment to purchase my first investment. I used the cash flow formula found on BP but it seems that the cash flow is small if not negative. What type of earning should I expect in the Akron area. Please see the example below. Let me know if you would make any adjustments to the way that I am calculating this.
I calculate a few of these daily for practice.
Highland square area.
Loan amount $110,400
Gross rent: $1350 including $675 from a tenant and $675 from me.
minus
Mortgage $841 PITI
Repairs $100 ($50 per unit)
Cap Ex $100 ($50 per unit)
Vacancy $65 (roughly 5% of the rent)
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$1106 in expenses
$1350 - $1106 = $244 cash flow