Are my expectations on annual cash flow off?

[Johnny Weekend]

I am looking to invest in an out of state (I am in Southern California) property, likely 3-4 units.

My goal is for an annual cash flow of about $5k after all expenses (including mortgage) are paid.

I have been looking at properties below 140k. So far I evaluated deals in Alabama and Dayton OH.

My assumptions are:

25% down loan

8% vacancy

property tax are around 2000 per year

insurance 1500 per year

maintenance and cap reserve 2000 per year

utilities - what the current owner is paying

property management 10%

When I use these assumptions I am getting a lot of properties that will cash flow about 3.5-4k per year.

Are my assumptions or goals unrealistic? 

I am looking at 3-4 unit properties because they seem to come close to my goals, single family houses seem to cash flow only 100-200 per month which in my opinion is a thin margin.

thank you. Appreciate your thoughts.

[Russell Brazil]

I cant imagine why anyone would invest in a location that is expected to be vacant 1 month every single year.