Cash Flow Analysis Help!

[Joshua Hollandsworth]

Hello, I am 19 years old. I have been studying real estate for 2+ years and saving as much money as I can! I have built a moderate team that I trust. I have been pre-approved. My agent and I are currently trying to find an FHA Approved property. ANYWAYS... Ok. Please don't try to scare me off! My dream is to become a full-time real estate investor. I want to know from you guys, what truly MUST be deducted in a cash flow analysis other than PITI, Property Management, Vacancy and Repairs, HOA, CapEx etc. ? ( Assuming tenant pays all utilities and lawn maintenance) I am not concerned with Utilities or lawn care. I am being very careful with my analysis, but I feel as though I am WAY over thinking things. My BASIC analysis: Income - PITI - 5% Vacancy -5% Repairs - 5% CapEx= Cash Flow. I do consider property management as well, for future references. The price point we are looking at is 50k/30 year loan. I take the LOWEST possible rent when doing my analysis. ( Just to play it safe) Is 15% for CapExi vacancy and Repairs ok? I will most likely not be buying a turnkey property. Most likely my property will have more cosmetic issues. (No bad roofs, windows, foundation issues, etc) HOPEFULLY. But I am prepared for the worst. I know it isn' great especially with an older home, but if I made all the deductions Brandon Turner tells me to, I wouldn't cash flow on any deal, even with decent rental rates. I would highly appreciate any advise! Thanks a lot guys!!!

[Ralph R.]

@Joshua Hollandsworth  yep now your on the right track. Call the insurance people and get a quote for insurance. Also use the real taxes from the County tax office and remember they will change according to what you end up paying for the property. Also you do care about the utilities. If the water company will tell you usage find out. That will tell you if there are leaks in the future because you will have a baseline. Some tenants use more than others but you need some kind of base line number that you can watch later on. You will be paying utilities when it's vacant as well. RR