You didn't think about management, takes, capital expenditures like a new roof, tree roots cracking the foundation, replacing HVAC, vacancy, or evictions.

Other expenditures have to be capitalized and depreciated.  

This was good news.... no public burial, no family, no known friends.  

,I think you actually have negative cash flow for this property because there are other considerations besides just the mortgage payment and the taxes (insurance, vacancy, maintenance, capital expenditures, etc). 

Cash-on-Cash Return Cash-on-Cash, the popular real estate investing return, is explained including its meaning, shortcoming, and formulation...Debt Coverage Ratio (DCR) A ratio investors and lenders use to track and compare debt-related outcomes for rental property and measure financial risk...Gross Rent Multiplier (GRM) A quick and easy way to determine whether or not a property is priced in line with other similar-type properties...Internal Rate of Return (IRR) The time value computation that shows the ratio between future cash flows and initial cash investment as a percentage...Loan-to-Value (LTV) A computation related to mortgages that lenders use when financing investment property as a measurement of their financial risk...The Maximum Purchase Price Calculation A calculation investors can make to determine the maximum price they can pay for an income property to at least break-even and avoid a negative cash flow...How to Compute Net Present Value Net present value is explained along with its formulation and use in real estate investing...Profitability Index The time value computation that shows the 'proportion' of dollars returned to dollars invested rather than the amount...Rental Income Property Cash Flow A fundamental look at rental income property cash flow for those of you new to real estate investing...Sinking Fund Factor Know the amount you you must start setting aside on a regular basis now to cover a capital expenditure scheduled in the future...Tax MattersIncome Property Operating Expenses and the IRS Tax Code Learn what operating expenses should be included in a rental property analysis as well as what the tax code says about operating expense deductions...The Recapture Tax Real Estate Investors Face When They Sell The seldom expected recapture tax real estate investors expect to owe the Feds after they sell their rental income property....The Cash Flow After Tax Calculation How to calculate cash flow after tax step-by-step starting at the gross scheduled income...The Depreciation Allowance According to the IRS Tax Code How the IRS figures the depreciation allowance for investment real estate along with its concept, limitations, and formulation...Understanding Rental Property Depreciation and Recapture Tax Rental property depreciation allowance and the recapture tax associated with it are explained...AnalysisCap Rate or GRM?

This is a great property that we would love to invest in but would like to get some understanding on how we can 1.) afford these capital expenditures early on and 2.) what we could expect to pay for those expenses.

-Vacancy Rate of 10% -Repairs and Maintenance 5%-Capital Expenditures 10%For the sake of simplicity, I assumed the following to be 0%-Property Management Fees-Future Income Increases (rent increase) -Future Property Value Increases (property tax increase)-Future Expenses Increases (Maintenance fee increase)On paper, this property is cash flowing at $167 (0% down) and $295 (25% down) - I am hoping to leverage as much as possible on this property through refinance in future & I believe based on the rental income, this property can support leverage.I would like to know your thoughts around this and if you think this deal is one that we should proceed.

But we don't know if you're counting ALL the usual suspects with regards to expenses (taxes, insurance, property management, maintenance, vacancy and capital expenditures). 

s point, definitely set aside that money each month for capital expenditures, you'll use it!

Therefore, my first deal has to be as perfect as can be and have some positive cash flow that I can hold in a retained earnings account for future capital expenditures.