Based on 2017 P/L 4,000 Total Projected Income $ 217,192 Less: Vacancy Factor of 5% (10,860) Management Fee of 5% (10,860) Adjusted Net Income $ 195,473 Operating Expenses: Utilities-Based on 2016 P/L (21,000) Insurance-Based on 2016 P/L (5,000) Landscape-Based on 2016 P/L (7,000) Trash Removal-Based on 2016 P/L (6,000) Marketing-Based on 2016 P/L (4,000) Professional Fees-Estimate (3,000) Repairs & Maint.

They also have a vacancy.

Once you account for Capex, maintenance, management, vacancy, etc, there won't be much, if any, money left for cash flow.

As I'm going through my rental leases today, I realized I forgot about a one month vacancy in one of my properties and have falsely reported one extra month of rental income on my 2019 tax return.I had a net profit for my combined rental properties in 2019 and overpaying for income which I didn't make hurts!! 

At the end of the day, if it's a toss-up after he explains WHY it will be difficult to refill the vacancy, you'd better side with him and leave it alone.

how did you arrive at a 5% vacancy factor.

So I didn’t have a vacancy rate because both units are rented and also because I’m brand new to this and didn’t realize I needed a number for vacancy.

Even accounting for 5% each for vacancy, repairs and capX and another 10% for property management,  move out, you're And if you're looking at $325,000, that's going to be a smaller monthly payment. 

@Joseph Cacciapaglia - Expenses I considered - HOA, Taxes, Insurance, Vacancy, Repairs, CapEx, Prop Mgmt

The vacancy and turnover costs are what kill returns.