Operating expenses include taxes, insurance, management (even if you do it), maintenance, advertising, utilities (at least during vacancies), capital expenses (although not technically an operating expense), entity maintenance, legal fees, evictions, court costs, evictions, damage done by tenants in excess of the security deposit, I could go on and on.At any rate, you left out all of these expenses, which means your negative cash flow (even with your interest only loan) would be a monthly LOSS of about $768 per month (over time).Good Luck,Mike

You'll have all the other holding costs -- insurance, taxes, utilities, maintenance (besides the rehab,) and maybe HOA fees.

I created a Short Sale utility that produces all of the docs needed... contact me and I will send you a link.Good InvestingMichael Quarles

She moved in a boyfreind who was a loser and basically just put utilities in his name and did not pay.

In the meantime, the new hot water heater elements have been working overtime and probably resulted in greater utility bills.

However, with the poor job market, I may have a more difficult time flipping the contract. 2) Has anyone utilized those websites that sell motivated seller leads?

If you use the 2% rule:Mortgage ($108K, 7.5%, 30 yr): $755Cash flow: $332 or $83 per unit per month (better)Even at $108,000, I would not buy this building because the utilities are not separate.

Utilize wholesaling to generate cash flow.

Often appears to be less because only the most obvious expenses (taxes, insurance, utilities) are included and others (maintenance, property management, advertising, legal, evictions) are neglected.

so the "social networking utility" or utilities - as explained in the tutorial - refer to any and all of the sites "networking" tools and functionalities!