Hello,I am writing a business plan to start my own hostel. At this point I need to project my revenues and expenses to see if this idea is even possible. I don't know what all goes into the expenses of operating a hos...

The location (schools, restaurants, crime, etc) is decent but nothing too promising in terms of appreciation (3% annual average) Here are the details: Purchase price: $170,000Rental Estimate per month: $1500HOA: $1000/yrInsurance: $1100/yrTax rate: ~3.4%I assumed the following:I use a 20% downpayment on a 30 year fixed conventional loan w/ 4% APRNew build so warranty is covering most things so minor, if any, maintenance will be neededTake into account 1 month of vacancy per yearTake into account annual broker fee to list of one months rent~5K closing costs~2k in appliance purchasesResult: Assuming rent range of $1500-$1550/month and assuming 1 year I wont have to pay the broker fee to list:From my cash flow analysis I am projecting to have positive cash flow of around .02%-2.1% per year. 

The expected floor of market rents is would give $70/month in FCF and the ceiling would provide $150/month in FCF.2) Again, those numbers exclude the amount I'm paying myself for PM, but point granted.4) Thanks for this - is this because at my cash flow projections I would wipe out 1-2 years of FCF + Capex reserves?

I would like to build a long term relationship to span multiple projects per year.

I have been a partner with a mentor I was lucky enough to work with on 2 fix and flip projects thus far that were a great learning experience.

The location (schools, restaurants, crime, etc) is decent but nothing too promising in terms of appreciation (3% annual average) Here are the details: Purchase price: $170,000Rental Estimate per month: $1500-$1550HOA: $1000/yrInsurance: $1100/yrTax rate: ~3.4%I assumed the following:I use a 20% downpayment on a 30 year fixed conventional loan w/ 4% APRNew build so warranty is covering most things so minor, if any, maintenance will be neededTake into account 1 month of vacancy per yearTake into account annual broker fee to list of one months rent~5K closing costs~2k in appliance purchasesResult: Assuming rent range of $1500-$1550/month and assuming 1 year I wont have to pay the broker fee to list:From my cash flow analysis I am projecting to have positive cash flow of around .02%-2.1% per year.

A live in flip would be something you buy as a primary residence at a steep discount that requires some work, that you can do over the course of the year, sell for a profit, and roll that investment gain into your next project. 3.

It could also matter to the tinkerer that wants a place to work on small projects and it doesn't look like there is anywhere to do that on this property.  

I have 12 years of experience in student rentals and there should be a massive financial upside to consider that niche.

I don't think we're on the precipice of some massive crash.