Determing formua for positive cash flow

[Christopher Hughes]

Hi all,

New member here who is working on learning right now before I begin to make any investments down the road. The forums and podcast have been a great resource and I am hooked, trying to learn all I can. 

One thing I have noticed is that there seems to be a formula for those of us looking to pursue the buy & hold niche to determine if a property will have a positive cash flow. I am looking for some clarification on this formula so that I can begin to analyze properties and area to determine what would be a good investment decision. 

I've seen many say pulling $100+ out of a rental property is good, which I agree, and I've seen some say they are pulling $500 out of a property. This includes percentages for maintenance, vacancy, CAPEX, taxes? My question is, what all needs to be accounted for and what percentages etc?

Say for instance I am interested in properties in the $60-$80k range, with a 20% down payment. I've found properties in this range in my area that seem to rent for $1000-$1200. A mortgage in that range can fall in around $400 +/- depending on the total cost of the property. What else would you want to account for and deduct from the monthly rental income to come to the conclusion if it could be profitable? I find myself unable to see what may be a good move if I am unsure exactly what I need to make sure I account for.