Check My Math for a Memphis Investment

[Dan P.]

Hello,

I'm in the process of purchasing a SFH in Memphis but my numbers are calculating an annual loss of almost $1,600/year. Is this a poor investment or am I over estimating expenses? Context: This is a SFH built in 1969 that has been rehabbed extensively (new roof, new plumbing, new HVAC, etc).

Purchase Price: $190k

Income:  $15,540 ($1,295/month)

Expenses:

Taxes: $1,975
Insurance (property & earthquake): $1,252
PM fees (10%): $1,554
First month's rent fees (PM placement fee): $647.50 (assuming new tenant every 2 years)
Vacancy (5%): $777
Maintenance (10%): $1554
CapEx (5%): $777
Mortgage (25% down, 3.125%): $7,320
Turnover costs (assumption is $2,500 for each turnover every 2 years): $1,250

Total:  $17,106.50

Cashflow: -$1,566.50 annually

I may be a worst case scenario kind of guy with some high expense assumptions, but I don't think there are enough ways to reduce the expenses/assumption to cashflow $1,000/year.  What are your thoughts, am I being unreasonable?