Too much set aside for expenses?

[Nick Causa]

Hey all, my wife and I have been looking to get into a multi family and house hack closer to work. I don’t know if its because we live in an EXPENSIVE area or because we’re trying to FHA a multi so the monthly debt service is astronomical, but every deal I analyze comes out cash flow negative. Am i putting too much aside for expenses causing every deal to look like a bad one? Or is the market just that expensive right now haha. Heres how i have a spreadsheet of mine broken down: Expenses per month: Maintenance: 5% of rent Management: 8% of rent (for after we move out) Vacancy: 5% of rent CapEx: 10% of rent Lanscaping/snow removal: $100 I know every case is different but whenever i run the rent through these expenses and then take into account PITI I come out negative. To give an idea multis around here go for $575k+ and taxes are hardly ever less than $11k. Rent estimates are just around $2300 for 2 bedroom 1 baths.