Rental Cash Flow Explained

Rental Cash Flow is the monthly income you receive from your rental property after subtracting all operating expenses and mortgage payments. Understanding cash flow helps investors quickly assess whether a rental property will be profitable and sustainable long-term.

Typical Expenses Included:

• Mortgage Payments: Principal and interest.

• Taxes and Insurance: Regular monthly costs covering property taxes and insurance.

• Vacancy Costs: Typically estimated at 5-10% of gross rents to account for periods when the property is empty.

• Maintenance Costs: Usually estimated at 5-10% of gross rents for ongoing property upkeep.

• Property Management Fees: Commonly 8-12% of monthly rental income if managed professionally.

• Other Expenses: HOA fees, utilities (if covered by owner), and miscellaneous expenses.

At FlipSmart Loans, we're not just lenders—we're experienced rental property investors ourselves. We know the numbers and what it takes to keep your rentals profitable.