Cash Flow Calculator
Calculate your real estate cash flow to determine your investment’s profitability.
What is Cash Flow in Real Estate?
Cash flow in real estate refers to the net income generated by a rental property after deducting all expenses. It is a key metric for evaluating the financial health of an investment property.
Why is Cash Flow Important?
- Indicates financial sustainability of a rental property.
- Helps investors compare potential real estate investments.
- Ensures positive income for long-term profitability.
FAQs
How do I calculate cash flow?
Cash flow is calculated as Monthly Rental Income - Monthly Expenses. Use our calculator above for quick results.
What is a good cash flow for a rental property?
A good cash flow depends on your investment goals. Generally, a positive cash flow ensures profitability, while a negative cash flow may require additional funding.
What expenses should I include?
Include property taxes, mortgage payments, maintenance costs, insurance, utilities, and management fees.
Can a property have negative cash flow?
Yes, if expenses exceed rental income, it results in negative cash flow. This can be managed through rent increases, cost-cutting, or refinancing.
