Cash flow issues - Investing in Austin while in Bay area

[Amey Naik]

I am not able to understand how even with $0 property management fees, people manage to get positive cash flow.

I have this spreadsheet here, can you please review and see what calculation here is wrong. No matter what I try, it seems to have negative cash flow.

Here, an example property is considered to be in Leander TX.

https://docs.google.com/spread...

[Ryan Kelly]

@Amey Naik Your eyes are not deceiving you. A good 80-90% of single-family homes won't have positive cash flow right now because the market is appreciating too fast in comparison with the rents. You can find cash flow properties, but it isn't easy and takes focus and quick reflexes. Multi-family properties have better opportunities at cash flow, but there aren't nearly as many and are also in high demand. 

Regarding your spreadsheet, tenants should be picking up all the landscaping expenses, so you don't need anything in that column. You can also shorten your vacancy rate depending on where you purchase. Most properties, if fairly priced and in good condition should lease in 1-2 weeks, if not sooner. You can also find some property managers between 8-10%, so 10% is on the higher side.