Rural Rentals Analysis

[Alexander Phippen]

I'm having a hard time believing my analysis numbers. What am I missing? 

Listing price- 22,000 with no major flaws as well as I can tell. 

So for rent I can list for $400 a month

Mortgage-$118

Taxes-$15

Insurance-$15

Utilities-tenant paid 

repairs-$40 

capex-$40

Management- $40

vacancy-$20

Is it possible that I would be netting that much? 

[Tim Herman]

@Alexander Phippen CAPEX too low replacing a roof example $5000/40=125 months. Oops have galvanized pipes and they all rusted out $8000/40=200 months of CAPEX. Low income properties have to have a higher percentage taken out to cover replacing items. Vacancy is another problem in small communities. Where I live in North Dakota some properties can sit vacant for 6 months. A declining population area. I don't want to discourage you but make sure you know your numbers.