Here is what I put in the calculator - - 20% down of $220,000 so my down payment is $44,000 - Purchase closing cost of $4,000 - The mortgage rate of 4% with a 30-year term loan - Property management fee of 10% a month - The rent charged for a month $1,650 - Property tax $220 a month - Insurance $77 a month - Repairs maintenance a month 5% - Vacancy rate a month 5% - Capital Expenditure rate a month 5% - The tenants will pay electricity, sewer, gas water, HOA fees, and garbage Can someone tell me If I miscalculated something or did something wrong?

I was thinking it would be a much bigger capital expenditure.

There is a lot to consider since it was built in 1920.https://www.biggerpockets.com/blog/2015-10-13-real-estate-capex-estimate-capital-expenditures- I’m gonna guess you’ve not done due diligence on the place?

First property, buy and hold, decrease monthly expenditures How did you find this deal and how did you negotiate it?

And then a third account for expenditures perhaps 5% 

These are capital intensive expenditures.

Not quite so fast on your cash flow projections...Regarding your expense calculations, you're forgetting:Vacancy - I assume 1 month out of every 12, or 8.33% of annual rents = $417/moProperty Management - 10% of annual rents, in my market = $500/moMaintenance and Capital Expenditures (CapEx) - I assume an annual amount equal to one month's rent = $417/moThat whittles your projected cash flow down to -$326/mo.In its current form, I don't see a deal here.

I don't you setting anything aside for maintenance or capital expenditures. $42 a month on maintenance is only $500 a year.

@John Teachout the current owner has actually done well with capital expenditures.

The plan is to stabilize rents and then place 10yr Freddie Mac SBL non-recourse debt on the properties.LLC Format: Manager Managed LLC.Financial decision rights:  Sponsor handles all financial decisions, but requires investor approval for: property sales, refinancing.Operational decision rights: Sponsor handles all operational decisions, but requires investor approval for: signing any contracts with term over 1 year, any expenditure over $20,000.Any advice or critiques are welcome.