How do you take out cash flow?

[Jose Almonte]

Please excuse me if this is a dumb question. But how do you know what to take out every month from the bank account once the rent checks are deposited? 

Let’s say hypothetically the P/I is $8000, the property tax is $30,000 (divided into 4 payments), and insurance is $4000 (one time a year), and the expected random maintenance  is $2000 annually? 

Rent deposits are $12,000 a month. 

Thanks.


It becomes confusing as to what to leave in the bank account for future property tax due/Insurance/maintenence once mortgage is taken account. 

What is the formula? What am I not seeing? I’m 

[Mohammed Rahman]

Hey @Jose Almonte - good question, I recommend reading a few real estate books (you only really need to read just 1 basic RE book). 

The reason for that is because based on your post it seems that you may not have considered other things in the equation to factor during your cashflow (e.g. capex, opex. etc.) 

A quick google search of "Cashflow formula real estate" would yield success :)