Practice Run-Duplex

[Chris Herrera]

I'm looking at a Duplex and want to see if my logic makes sense.

Purchase P: 200,000

Down Payment: 40k 

Mortgage: ~800/month

Gross Rents: 2,000/month

Taxes: 375/month    Insurance: 200/month    Vacancy 200/month    Insurance: 100/month  

Management: 200/month   Reserves: 200/month      Maintenance: 100/month

Cashflow = -175/month

I know the 1% rule is just a rule of thumb, but am I missing something that gets me that bad of a cashflow figure? That's even without factoring initial repairs or any utilities that are not paid by the tenants