Calculating Cashflow

[Ryan Dukelow]

So I'm ready to buy my first SFH rental, but I'm struggling with a few things. I want to know what expenses I MUST account for when calculating rental income minus expenses. (Tax, Insurance, etc.) Also, how do I know what some of those numbers will be? I have a property I've been looking at and I know that tax on it was 2,000$ last year.. what else do I need?

I'm excited to here back from you all at BP, keep in mind I've done a lot of reading and homework, but I'm kind of freezing when it is starting to become real. I want to keep my drive going, which is why I decided to ask for help!

[Bryan N.]

The more conservative the better. Figure out PITI. Then 10% for property management even if you self manage (pay yourself), 10% for maintenace, 10% for vacancy, 10% for CAPEX, HOA if there is one, and I want $100 per door after all those expenses. But, most importantly check with investors in your area to see what else you need to incorporate. I'm in Virginia and not Canada so you might have different rules.