Being Smart vs Analysis Paralysis

[Kyle Scholnick]

I am having a very tough time finding good rental properties to buy. Not just in my expensive area, but everywhere. It seems like after you do a proper analysis, the potential costs/expenses are so high, almost nothing works unless the rent is 2% of the purchase price (which are hard to find as well).

I personally use the following to evaluate a rental property:

Taxes, insurance

Sewer/garbage/electricity/snow plow/HOA (usually paid by tenant, so not as important)

Maintenance 15%

Vacancy 10%

Capital Expenditures 15%

Property Management 10%

Mortgage/interest

I don't like to factor in appreciation at all to be safe

I am conservative with the % of rental increase per year so I try not to use numbers >2-3%

I like to be conservative with the maintenance and capital expenditures, but I don't think these numbers are that unreasonable, yet seems so difficult to find a deal buying  a house around retail price.

Is it only possible to be profitable if I am buying a foreclosure or a distressed property? Can you not be profitable using these numbers just buying retail value?

Am I using too conservative numbers?

I would really appreciate constructive advice from our community, rather than unhelpful comments like "Just look harder." I would really love some of the advice from all you experts and pros who do this stuff in your sleep.

Thanks!