You are forgetting to factor in basic repairs, capital expenditures, vacancy, etc..

The house was built on Native American burial ground18.

@Robert JuanesWhen working the numbers it is customary not to include the debt service (mortgage) or the capital expenditures in your operating expenses.

*The cost of repairs and maintenance in excess of Five Hundred and no/100 Dollars ($500.00) shall be shared equally by Owner and Tenant, provided that Owner has approved of each expenditure in writing prior to the commencement of any work on the premises, and provided that the work is performed by a reputable contractor.tenant law in the State of:

The building was built in 1900 so I had to budget repairs and capital expenditures accordingly.

I use a simple spreadsheet when I'm rehabbing a unit, and paying for capital expenditures or other repairs, and that works for me, but a regular maintenance scheduling program (they may already have one) sounds useful - when filters need changing, when to call the mowing crew to start and stop for the year, landscapers, gutter cleaners, etc.

I found a property that will cash flow me 1000$US/month after all expenditures for a 99,000$ property.

Hello - this may be a newbie question but from reading the various articles on BP and Investopedia, my understanding is that Net Operating Income (NOI) is defined as operating expenses required to run and maintain the property but excludes Loan Payments, Capital Expenditures, Depreciation, and Amortization.The IRS has recently raised the Tangible Property Expensing threshold to $2,500 (from $500 previously) per item so if you took advantage of this change, wouldn't it decrease your NOI since you can expense smaller capital items as repairs & maintenance instead of capitalizing and then depreciating them over time?  

I am trying to get better at evaluating my deals and one of the things I am looking for is to better estimate capital expenditures.

We would break even on rent at $1,700 a month and  pay a little with expenditures but the property's mortgage loan would be completely paid off in ten years with just the remaining equity loan at $300.