Is my calculation right houston/greater Houston?

[Dan Tran]

I am looking at property and all my calculation requires me to ask for 40% less then asking price.

I am currently using 10% property manager, 5% maintenance, 10% capex, 5% vacancy, $125 monthly insurance.

Am I being to conservative with my numbers?

[Joel Lopez]

More then likely yes, you have to find a good deal to make it cash flow right now. Especially in the market over 150k. The 1% rule should help you find a house that makes sense. But I would ask around to make sure these are the numbers in your specific area. Side not houston is around 9% vacancy. And conservative people normal do 10% maintenance, 10% cap. If this house is newer or your remodeling you can lower these numbers. Also I’d recommend you manage your property’s to start but it’s a good  idea to calculate for it anyway. Have you considered how much equity your going to put into the property. Use the monthly payment for the actual loan amount.