Rental Property Cash Flow Calculator

Cash flow is the lifeblood of any rental property investment. It represents the net income generated by a property after all operating expenses and mortgage payments have been accounted for. Positive cash flow means money is coming into your pocket each month, while negative cash flow means you're paying out of pocket to cover the property's costs.

Key Components of Cash Flow:

• Rental Income: The total rent collected from tenants.
• Mortgage Payment: Principal and interest paid on the loan.
• Property Taxes: Annual taxes, typically paid monthly into an escrow.
• Insurance: Homeowner's or landlord's insurance.
• Maintenance & Repairs: Costs for upkeep, unexpected repairs, and routine maintenance.
• Vacancy Rate: An allowance for periods when the property might be empty between tenants. Even if your property is always occupied, it's wise to factor this in.
• Property Management Fees: If you use a property manager, their fees (usually a percentage of gross rent).

Calculating cash flow helps you assess the financial viability of a rental property. A property with strong positive cash flow can provide a steady stream of passive income, contribute to wealth building, and offer a buffer against unexpected expenses.