Property Management Expense ?

[Kyle M.]

How do we factor in property management expense into cashflow?  Obviously we factor in the percentage each month, but how about the bonus they get when they find a new tenant?

Hypothetically lets say a property management company is taking 8% of monthly rent and a full month's rent when they find a new tenant (quote I got today).  I do not plan on using property management (yet) as this is my first rental.  But I would like to cover all my bases and see if I would still have a profitable rental if I decided to use it.

I believe it depends highly on the neighborhood that we will be renting in.  How does this average out?

For example: The area that I am looking in is not a great area but by no means a ghetto.  $70K property.

Cash flow:

Rent - Mortgage (insurance inc) - tax - maintenance (10%) - vacancy (10%) - property management

$1100 - $320 - $225 - $120 - $120 - ? = +315 (before PM)