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.

I would know -- we've been renting it out for 7 years and it's never cash-flowed. 

They want $250 EACHWith the high prices in California some of my properties barely cash flow. 

Since we own a bunch of properties, we are able to absorb the expense, but that is a lot of cash flow out the window!

You may not get any cash flow at all in years 1 and 2 but after a stabilized year 3 and a refi very doable..

I would look into turning that 120k into 4 or 5 more properties that cash flow an additional 2-2.5k a month, thats where you missing the boat. 

That property has been cash flowing nicely for a little over a year. 

Are people just accepting lower returns or negative cash flow?

I want to earn some monthly cash flow but how can I charge him rental rates when he is 50% owner?

I realize that it is an over-generalization but compared to other markets it appears that Ohio is purely a cash-flow play.