What Else Should I Factor into Formula?

[Alexander Flores]

Hey, I have been around the website for a couple months. I am a big numbers guy and into excel a lot. When calculating CashFlow and CoC Return I mainly factor in my Expenses Per Month As

• Mortgage (at 20% down at 5% interest for 30 year fixed)
• Monthly Taxes
• Monthly Insurance
• 10% of Rent for Vacancy
• 10% of Rent for Maintenance

Then I take my expected rent (using rentometer,craigslist,knowing the area) and subtracted my expenses to get my cash flow? Am I missing anything that crazy for monthly cashflow? Also all of my numbers are based on if I paid the asking price fully. Any input is appreciated, thanks all!

[Mike O'Connor]

Will you be managing the property yourself, or using a property management company? If the latter, you would need to factor in ~10% for that to be safe. Are you charging back utilities to the tenant(s)? Advertising costs for finding tenants? Eviction/legal (a 'general' category for the unknowns) could also be helpful if you are trying to be conservative. Also, don't forget to include the things that work towards your benefit like rent inflation.