Am I calculating costs correctly?

[William Hoppes]

Am I doing costs right?
I'm running the numbers on some different properties and I just want to make sure I'm estimating my costs right. Does this seem accurate to you?

Mortgage: For multifamily the loan will be 75% of sale price and the interest rate will be ~6%

Property tax: sale price multiplied by the property tax rate I find online.

Repairs: 5% of rents.

CapEx is $3000/year. (Taken from Ben Lybovich)

Vacancy is 8% of rents annually.

Property management is 10% of rents.

Landlord insurance is ~$300.
Finally, since I'm OOS, I want to pay an inspector to check out the house twice a year, which should be about $600 altogether

So for an imaginary $100,000 duplex with $16,800 ($1,400/month) in rent, my annual balance sheet should be:

Mortgage of $5,400
Property Tax of $2,000 (assuming 2% rate)
Repairs of $840 (spent or saved)
CapEx of $3,000 (spent or saved)
Vacancy expenses of $1,344 (spent or saved)
Property Management of $1,680
Landlord Insurance of $300
Inspectors at $600
Total Expenses of $15,164
Rental Income of $16,800
Profit of $1,636

Does this look right?

Based on this, I wouldn't be making much money even though rents are 1.4% of value, which should be good. I feel like I'm overestimating costs somehow but I'm not sure where.

[Yannik Cudjoe-Virgil]

@William Hoppes Decent start but its not that black and white. Expenses vary from market to market. They also depend on what the current state of the property is. They get really particular when you scale up into larger multifamily 75+ units. 

Not sure the state of the property you are looking at but talk to your lender about rates. Call the tax assessors office for the tax rates in your area. Repairs are vague. Depends on the condition of the property, capEx as well. Vacancy depends on the market. If your are out of state, find a good property manager that you can trust to report the condition of the property (unless you really want to spend on an inspection twice a year).

Based off your numbers: This property is not cashflowing. You expenses may or may not be sharp. Work on sharpening your pencil if you can. Always buy for cashflow. Hope this helps.