Expenses > Cash Flow for the First Year ?

[Account Closed]

Background:

• $50,000 house
• 3 bed, 2 bath

Cash Flow:

• Rent - $850

Expenses:

• Down Payment - $10,000
• Mortgage - $201/mo (30 year loan)
• Rehab - $10,000
• Repairs - $500 (may or may not spend)
• Property Management - $85/mo (10% is fairly common)
• Closing Costs - $1,953

Conclusion:

The first year's expenses were $25,885, while the property only brought in $10,200. Is this just a fact of life for the first year? Are my numbers out of whack? I didn't even take into account the fact that you probably won't have a tenant in the first month. Please go easy on me; I'm new at this haha.