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Updated almost 8 years ago,
Trying to get a better understanding of cash flow.
Hello everyone, I'm just trying to fully understand cash flow. Any help will be greatly appreciated.
Let say I bought and rehabbed a sfr and paid cash for all.
cash flow scenario: rent = $1000.00,
expenses: taxes = $ 250/mo. or $3000/yr.
insurance= $75.00/mo.
maintenance @ 10%= $100/mo.
vacancy @ 8%= $80.00/mo.
prop. mgmt. @ 10%= $100/mo.
CapEx. according to a
post by Ben Leybovich = $250/mo.
total expenses = $855/mo.
cash flow = $145/mo.
So my first question is would you agree that all the above criteria is the proper way to figure cash flow? The second would be how does anyone cash flow if the property is leveraged at all?