If your mortgage is $1,050 and your HOA is $165, between these 2 numbers you have $1,215 going out every month. The rent is $1,200 so you will not be cash flowing positive because you still have taxes, insurance, and vacancies. Not to mention there are always additional unforeseen expenses like appliances which seem to stop working or roof leaks caused by hurricanes (thanks Matthew). And you will not be able to say the tenet will cover the HOA unless rents in the area are actually in the $1,350 range. Unless, I am missing something, you will be negative cash flow. I have cut pasted a quick spreadsheet I use with expected expenses and I always calculate 1 month vacancy, which always seems to occur. The 2 maintanance expenses are monies I allow to accumulate over time so when I need a big ticket item, I have at least something set aside.
| Income | Monthly | Annual |
| Rent | $ 1,400.00 | $ 16,800.00 |
| 8.33% Less Vacancy | $ 116.62
| $ 1,399.44
|
|
| Toal Gross Rent | $ 1,260.00 | $ 15,400.56
|
|
| |
| Expenses | |
| Taxes | $ 137.33 | $ 1,648.00 |
| HOA | $ 45.00 | $ 540.00 |
| Insurance | $ 45.83 | $ 550.00 |
| Maintanence | $ 100.00 | $ 1,200.00 |
| Captial Exp | $ 100.00 | $ 1,200.00 |
| Total Expense | $ 428.17 | $ 5,138.00 |
