1. What is Rental Property Cash Flow?

Rental property cash flow is the net amount of money that remains after all expenses and mortgage payments are subtracted from the rental income. Positive cash flow indicates profitability, while negative cash flow means the property is operating at a loss.

2. How Does the Calculator Work?

The calculator uses the basic cash flow formula:

Where:

• Rental Income — Total monthly or annual rental income
• Expenses — All property-related expenses (taxes, insurance, maintenance, etc.)
• Mortgage Payment — Principal and interest payments

Explanation: The calculation shows how much money the property generates after accounting for all costs.

3. Importance of Cash Flow Calculation

Details: Positive cash flow is essential for long-term real estate investing success. It ensures the property can cover its costs and provide income to the owner.

4. Using the Calculator

Tips: Enter all values in dollars. Be sure to include all expenses - property taxes, insurance, maintenance, vacancies, property management fees, etc. Select whether you're calculating monthly or annual cash flow.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good cash flow?
A: Generally, $100-$200 per door per month is considered good cash flow, though this varies by market.

Q2: Should I include capital expenditures in expenses?
A: For accurate long-term cash flow analysis, yes. Create a separate line item for CapEx (typically 5-10% of rental income).

Q3: How does vacancy affect cash flow?
A: Always include a vacancy factor (typically 5-10% of rental income) even if the property is currently occupied.

Q4: What if I have multiple rental properties?
A: Calculate cash flow for each property individually, then sum them for your total portfolio cash flow.

Q5: How does cash flow differ from profit?
A: Cash flow is the actual money moving in and out each period, while profit includes non-cash items like depreciation.