1% Rule Properties are not Cashflowing

[Shilpa Matlock]

Hi All, I'm running my numbers and could use any tips. Is it possible to find properties that  meet the 1% rule, but are still not cashflowing? I'm looking at deals (2-4 units), many of which seem to meet the 1% rule or better, but when I plug in my expenses, it has negative cashflow. Am I just over-estimating my expenses, or is this normal? 

For example, $104,600 purchase price, 20% down (30 yr amort/6% int), $3,500 closing costs. GSI 16,200, actual rent less 8% est. vacancy = 14,904. So this exceeds the 1% rule, since we're at 1.29%. PM 10%, prop tax 2,200 (I confirmed), utilities 1,200, landscaping 1,000, insr 628, capex (6%) 894, maint (10%) 1,490. This is an older midwestern property, so I think maint and capex should be higher.

Am I over/underestimating expenses? Or missing any expenses? Any advice would be greatly appreciated.

Thanks!
Shilpa