Feedback on Buy and Hold Analysis

[Daniel Erdman]

Hey All,

My wife and I are looking to develop a portfolio of rentals in the northern portion of California's Central Valley (Sacramento and surrounding areas). I have been practicing analyzing cash flow on some of these properties and I need some feedback from those with experience.

I have included a breakdown on a property that I have located on Realtor.com, a quad in Modesto:

Purchase Price	$ 305,000.00
Mortgage (20% Down)	$ 1218.00
Assessed Value	$ 305,000.00
Tax Rate	1.3%
Taxes per Mo.	$ 330.42
Gross Income*	$ 34,000.00*
Gross Profit	$ 2,833.33
Maint.	$ 100.00
Management Rate	10%
Management Cost per Mo.	$ 250.00
Insurance	$ 80.00
Expenses Total	$2011.75
Monthly profit	$ 821.58

*The Gross is calculated using a rent of $825 per unit. Four units (quad) = $3300 per month or $39600 per year. I then deducted $5600 from the gross to account for utilities not paid by the tenants and other misc. expenses. This is what I am calling Operating Expenses.

I am not sure how to appropriately account for Operating Expenses and vacancy.

Other than the above, is there anything else I missed? And, would this be a profitable property? Is this realistic?

I am not buying this place, I am simply interested in seeing if my analysis needs tweaking.

Thanks!