Deal Analysis Advice

[Brian Washburn]

I am brand new to Real Estate in the Omaha, NE area, looking to buy my first buy-and-hold in 2018. I hear people say all the time that a good benchmark for these deals should be $200+ cashflow per month. What I am finding, however, is that I am having a really hard time finding any properties that meet that benchmark when using the BP calculator.

EXAMPLE:

-4BR/2BA in great location (near 2 universities and entertainment districts)

-Listed for $85,000

-No major repairs needed

-$1,700 Annual Property Tax

-20% down

-30-year Term

-$90/mo insurance

-$925/mo rent

-10% holdback for vacancy

-7% holdback for CapEx

-7% holdback for Repairs

-5% holdback for Management (though I would manage myself)

Inputting all of these factors I am getting almost no cash flow. To hit $200 cash flow I have to bring my purchase price all the way down to ~$48,000, and the list price is already below a lot of comps.

Can anyone tell me what I am doing wrong in these analyses? I seem to get these type of results for every deal I look at.