WON'T CASH FLOW, is it the taxes?

[Account Closed]

Greetings BP,

I have been trying to break out into the world of multifamily REI. However, there is not a single property in my area or the surrounding areas that will cash flow even close to $100/door. I am under contract for a duplex currently but the only way I could get it to cash flow at $100/door was to do a cash purchase.

This property was the closest by far to getting $100/door then the other 60 or more properties I have analysed. Below is the break down on the numbers.

Purchase price: $46k

Scheduled Rents: $1300/month ($650 each unit)

Expenses are

Garbage: $60/mo (approx)

Lawn/Snow Removal: $60/mo (approx)

Water/Sewer: $60/mo (approx)

Insurance: $58/mo

Property Taxes: $283.33/mo (ouch, I think this is the reason for not making cash flow)

Vacancy: $130/mo (10%)

Capex: $130/mo (10%)

Management: $130/mo (10%)

Repairs: $65/mo (10%)

Cash Flow w/ Mortgage (25% down, 20yrs at 6%) = $76.50/mo ($38.25/Door)

Cash Flow w/o Mortgage = $323.67 ($161.84/Door)

What am I doing wrong? Or is it all due to the property taxes?

Any and all insight is very much appreciated

Thank you,

Jason