Cash on Return 4 square method always below 6% or in the Neg.

[Simon Lopez]

Using the 4 square method and every time I do a calculation my ROI is never above 6%. Sometimes its in the Negative. My Monthly cash flow is usually below $150. For calculating expenses I'm taking a percentage from the monthly Rental Income.

Taxes 7%

Insurance 9%

Xtra Flood Insurance 9%

Vacancies 5%

PM 10%

CapEX 5%

Repairs Tenant Damage 5%

From total purchase price:

Down Payment is set at 25%

Closing cost is set at 1%

Rehab Budget 1%

Are my percentages on the conservative side?  Should I lower them?