Landlord math
Gross rent is not spendable. Subtract mortgage, taxes, insurance, maintenance, management, and a vacancy allowance. What remains is operating cash flow before taxes.
Why reserves matter
One empty month or a water heater can erase half a year of “profit” on paper. Cash flow positive means surviving those months without panic selling.
Model debt service
Mistakes
- Assuming 100% occupancy forever.
- Skipping capex reserves because “the inspection looked fine.”
Use the calculator
FAQ
- Is appreciation cash flow?
No—it is hypothetical until you sell or borrow against equity, both with costs and risk.