Thank you for the replies.

I believe I'm running my numbers correctly, but would love some input.Purchase price: $99,000.00ARV: $150,000.00Improvements: $2,000.00 (home is rent ready, but needs fridge, dishwasher, and a cleaning)Closing cost: $5,000.00Mortgage: $531.00Property tax: $320Insurance: $85Vacancy: 5%Maintenance & repairs: 5%Cap ex: 5% (I'd generally do 10%, but this is a townhome)PM: 0%HOA: $300Potential rent: $1500-$1600Potential monthly cash flow: $40Cash-on-cash return: 9.5%Total Equity: $50,000.00Here's the deal.

Maybe I'm not understanding correctly but why is insurance covering this ?

@Lou Henley you are correct.

@Li Tolentino As @Brian Eastman correctly noted, UDFI may trigger tax.

@Russell Brazil and @Nicole A. thank you very much for your replies.

I want to make sure I am doing it correctly and want to have a strong lease in place. 

@Andrew Hodgson thank you for the reply, and information.  

@Ali Hashemi thanks for the reply and the information.

But be prepared to change up a bit from the Air B&B for when the market corrects again as vacations may dwindle a bit.