@Erin NewtonI understand this was a quick calculation but don't forget to account for the other operating expenses, utilities, capital expenditures etc.

@William Dubinsky Perosnaly I prefer to continue allocating for capital expenditures throughout the entire time I hold a property.

Assuming that you are interested in buy and hold, you will also need to include repairs, capital expenditures (CAPEX), vacancy, water/sewer (unless tenant is responsible), and property management.

Seems like renting it with the above numbers would leave you, at best, very lean, and, at worst, in a negative cash flow position after accounting for property management, vacancy, repairs, and Cap Ex.For example:$1,800 Monthly Gross Rent - $1356 (PITI) - $180 (10% for Property Management) - $180 (10% for Vacancy) - $90 (5% for Repairs) - $90 (5% for Cap Ex) = -$96 Net Monthly Cash Flow (It would be even worse if you could only rent for $1,700 per month)While you might not need repairs or capital expenditures in the short-term, with a 12-year old house, you're probably past the midpoint on the useful life of some of the systems in the house (e.g.

As I run the numbers now, the rental isn't cash flow positive when accounting for vacancy and capital expenditures because the mortgage is high.

Your main costs will be Property Tax, Property Insurance, Maintenance (small repairs, landscaping, pest control, etc), Capital Expenditures Reserve aka Cap Ex (money set aside for roof, HVAC, Flooring, etc), Vacancy, Property Management, and then any debt service you have on the property.

I would also have 7% or more of capital expenditures like a roof, paint, new HVAC, repaving the parking lot, upgrading facilities, etc depending on the amount of differed maintenance from the prior owner.

A lot of these homes are older and your on paper 2-3% rule can easily disintegrate with capital expenditure and/or eviction/turnover. 

You can make a profit now and the rents don't provide enough of a buffer for future capital expenditures.

The blog suggested putting aside $200 for capital expenditures, which I've been doing when running the numbers.