Rental Property Analysis
How is monthly cash flow calculated?
Review what monthly cash flow includes, what it leaves out, and why small assumption changes matter.
Answer
Monthly cash flow is the amount left over after income, operating expenses, and debt payments are accounted for.
Simple version: Cash Flow = Rent − Expenses − Mortgage
More complete version: Cash Flow = (Rent + Other Income − Vacancy) − Operating Expenses − Monthly Debt Service
Example: Rent = $2,000 Vacancy = $100 Operating expenses = $600 Mortgage = $1,100 Cash flow = $200/month
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