1% Rule and still small cash flow?

[Gil Keren]

Hi Community, 

I'm doing the math for the profitability of a rental. It looks like even with the 1% rule for rent and a low interest rate, I don't even manage to get 150$ of cash flow. Would like to know your opinion, where are my estimation is too high/low (did I forget some expense?), or if the 1% just doesn't cut it?

The numbers:

Price: 100k

down payment: 20k

rent: 1000 (based on the 1% rule)

expenses:

mortage: 359 (based on 3.5% interest, pretty optimistic)

homeowners insurance: 100

property taxes: 72 (based on 0.868% of 100k)

repairs: 120 (based on 12% of the rent)

management: 80 (based on 8% of the rent)

vacancy: 80 (based on 8% of the rent)

additional expenses: 50 (garbage, lawn/snow, I don't know what)

summary:

total expenses: 861

cash flow: 139