Cash flow calculations. Am I doing this correctly?

[CB Browning]

Hello everyone, I am new here, and am still trying to figure out whether investing in my area, southern New Jersey, is worth the trouble.

Any help would be appreciated.

My strategy is to acquire long term rentals on single family homes for cash flow, using the BRRR method. I would most likely be rehabbing these homes myself, as I already have experience in the construction trades. However, I'm having a bit of trouble with my cash flow calculations... nothing seems to make money!

Here is an example:

Purchase price: $50K

Rehab cost $10k

This will ALL be financed at 4% interest (even the 20% down payment).

so...

Assuming I can rent this place at around $1200 /mo (typical for my area)

Principal + Interest = $286 /mo.

Property tax's = $300 /mo.

Home owners insurance = $75 /mo.

Water/Sewer = $50 /mo.

Landscaping = $50 /mo.

Vacancy = $100/mo.

Repairs= $50/ mo.

Cap Expenditure = $50/mo.

Property Management = $120 /mo.

Accounting = $25 /mo.

Total monthly expenses: $1,106

This leaves me with a cash flow of only $94/month, and that is only if I can actually get $1,200/ mo in rent.

Do these calculations look correct and reasonable... or am I doing something wrong?