Am I doing something wrong???

[Rashid Bailey]

Does the year a house was built affect the cash flow.. I did my first analysis on a property and my numbers was so horrible I couldn't understand how.. http://mymobile.flexmls.com/kelliwatkins/email_links/20170227190208119384000000/listings/20160906211028834384000000

[Jeff Sprunger]

Year of the home shouldn't affect your cash flow.  a newer home generally rents for more money.  the nicer the neighborhood also, the higher the rent.

usually, when analyzing a property, I look at:

Purchase price (loan payment)

taxes (county, city, school)

insurance

vacancy (7-12%)

management (10%)

capex (10%)(repairs for things down the road, ie: roof, furnace, etc. less for newer home, maybe zero for a number of years.)

Misc (could be anything, ie:  Water, trash. lawn care, snow removal, etc...depends on your area)

once I have this number, I subtract it from the rent I can expect to receive. ( you need to know what you can get in the area for rent.  I use many different methods to figure out rent prices for a specific area (Rentometer, Craigslist, Realtor, Trulia, etc...)

this gives me a pretty good idea if a property will cash flow or not.