Cash flow is what remains after realistic rental income and recurring property costs are accounted for. It is a screening tool, not a promise of future performance.
Use a current long-term rental estimate for a comparable property, then adjust for bedrooms, bathrooms, condition, parking, furnishings, and local demand. Annual gross rent is monthly rent multiplied by twelve.
Monthly rent × 12 = annual gross rent
Include the mortgage payment, property taxes, insurance, homeowners association dues, vacancy reserve, maintenance reserve, management, utilities, and any recurring service costs. A missing expense can make a weak deal look attractive.
Rent − operating costs − mortgage = monthly cash flow
Suppose a property rents for $2,000 per month. If taxes, insurance, association dues, vacancy, and maintenance total $550 per month, and the mortgage payment is $1,050, estimated cash flow is $2,000 − $550 − $1,050 = $400 per month, or $4,800 per year before income taxes.
PositiveCash.me combines property data, rent estimates, financing assumptions, and adjustable reserves. Replace estimates with current quotes before making an investment decision.
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