Rental Property Cash Flow
Understand the full operating picture before calling rent “profit.”
Cash flow is more than rent minus mortgage
Start with gross rent, then account for vacancy, mortgage, property tax, insurance, HOA, maintenance, repairs, capital expenditures, utilities, management expenses, and other operating costs. The remainder is an educational estimate of net cash flow—not a guarantee.
Illustrative example
Suppose monthly rent is $3,200. If vacancy reserve is $160, mortgage is $1,700, tax and insurance are $450, HOA is $150, maintenance reserve is $200, and management is $320, the estimated cash flow before other costs would be $220. Actual results vary with the property, lease, repairs, financing, and timing.
Use the number for planning
Compare operating assumptions, reserve needs, owner involvement, and the alternative of selling or using the equity elsewhere. Review the assumptions periodically as rent, costs, financing, and property condition change.
Property Management
Sell or Rent
Rental Review
Educational information only. No investment-return or cash-flow outcome is guaranteed.