Rentals minus Expenses which would include (a) vacancy factor(b) property taxes(c) insurance(d) utilities(e) repairs(f) capital expenditures / reserves(g) travel and transportThat leaves you with Net Operating Income (NOI)NOI / Property Purchase Price = Capitalization RateNOI minus mortgage is your net cash flowNet Cash Flow / Equity = Return on Equity

With the exception of a few things like installing a few appliances, we won't have any major capital expenditures or repairs for some time.

I'm NOT looking for an answer to that I am simply asking why not just take the broker fee as an operating expenditure? 

Insurance: talk to an insurance agentTaxes: 1.48% for Columbus according to Franklin County websiteCapital Expenditures: 10% of rentRepairs and maintenance: 5% of rentProperty Management: 0% since I will be self-managingVacancy: 5% (that's about 18 days per year)Utilities: Tenants pay for electricity, gas, and waterHOA: depends on the propertyAre there any expenses I am missing?

What I mean is: Are you accounting for maintenance & repairs, capital expenditures, etc.? 

We then took that number and calculated what we thought would could get for rent (rentometer.com/craigslist ads in the same area) .We then calculated what we would pay for taxes (you can get that on zillow) added buffers for what it may cost to do some fixing up, added 5% of maintenance, 5% for capital expenditures, 8% for property management (we already had an agreement). 5% for vacancy into the expenses.  

expenditure minus income, then that number multiply by 12

The property would go for around 35k, and could easily rent for 750 with no capital expenditures.  

CapEx is Capital Expenditures, meaning big ticket items that need occasional replacing, like roofs, driveways, and furnaces.

Option 1: Build the Cap Ex expense into the monthly expenses of the property for the lifetime of the property as long as I own it.Option 2:  once I reached a certain amount in capital expenditure reserves then  set that money aside and don't use it until its needed and then once I have that reserve of Cap Ex money set aside  I could then I could roll in my previous monthly cap ex expense into monthly cash flow to increase it even more.