1. What is Cash Flow for Renters?

Cash flow for renters represents the net amount of money remaining after subtracting all deductible expenses from the gross rental income. It's a key metric for assessing the profitability of a rental property.

2. How Does the Calculator Work?

The calculator uses the simple cash flow formula:

Where:

• Rental Income — Gross rent collected from tenants
• Expenses — All deductible expenses including mortgage, taxes, insurance, maintenance, etc.

Explanation: Positive cash flow indicates profitability, while negative cash flow means expenses exceed income.

3. Importance of Cash Flow Calculation

Details: Calculating cash flow helps renters evaluate property performance, make informed investment decisions, and plan for financial sustainability.

4. Using the Calculator

Tips: Enter monthly rental income and total monthly expenses in dollars. The calculator will show your monthly cash flow.

5. Frequently Asked Questions (FAQ)

Q1: What expenses should be included?
A: Include mortgage payments, property taxes, insurance, maintenance, utilities, property management fees, and vacancy reserves.

Q2: What is a good cash flow amount?
A: This varies by market, but generally $100-$200 per unit per month is considered good for single-family rentals.

Q3: Should I include principal payments in expenses?
A: Yes, include the full mortgage payment (principal + interest) as an expense for cash flow calculations.

Q4: How does cash flow differ from profit?
A: Cash flow represents immediate liquidity, while profit includes non-cash items like depreciation and amortization.

Q5: Should I calculate cash flow before or after taxes?
A: This calculator shows pre-tax cash flow. For after-tax cash flow, you'd need to account for tax deductions and liabilities.