Anyone managed to generate cashflow when RTV is less than 1%?

[Matthew Gu]

I feel it extremely difficult to have positive cashflow when RTV is lower. I searched through zillow for several promising places like Tulsa OK, Indianapolis IN and Memphis TN, the best RTV I can find is around 0.75% in Tulsa. Here's the breakdown of all the cost and incomes:

home purchase price: 140k, rent per month: 1100 (RTV=0.79%)

Income: 1100*12 = 13,200 per year

Down payment 30%, interest rate 4% => mortgage per year is 5,600

1.5% property tax, 1% maintenance, 1.5% home insurance => another 5,600 per year

PM fee: 10% rent per month + 100% rent for new tenant (assume tenant stays for 3 years) => 1,320 + 1,100/3 = 1,686 per year

Total cost: 5,600 + 5,600 + 1,686 = 12,886 per year

There's barely any cashflow and does not even include the vacancy time between lease, legal fee in terms of a dispute/eviction etc.

So the question is, should I try harder to find 1% properties in these areas, or there's something that I miss in the calculation above?