Calculating 1% Rule

[Charlotte Wilson]

Maybe I am overthinking this but when I look at properties to purchase that I plan to rent out, how do I make sure I am including all the potential additional “cost” besides the mortgage and property taxes? Is there a quick way to estimate what those other costs will be monthly to make sure my calculations are accurate? This will be my first investment property and My fear is that I will estimate my cash flow incorrectly and end up losing each month. Any advice or thoughts are appreciated. 

[Caleb Brown]

Besides mortgage and taxes you should factor in cap ex, repairs/maintenance, property manager, insurance, and vacancy. Cap ex, repairs and vacancy is a % that you'd set aside from the monthly rent. Property management would depend on the company but ranges from 7-10% so interview a few different companies. If you self manage I would still keep property management cost in mind if you change directions.