Lenders typically look at the rental income of the property to determine if it covers the loan payments.

My bookkeeping firm provides me with a steady active income, which allows me to keep doing deals, cover unexpected expenses, and navigate the occasional black swan event.My Take on Cash Flow:Cash Flow is a hedge against corrections.

If it's a gray area, we usually cover the service call the first time.

Do searches on questions you might have before posting it to see if it has been covered.

@Candy Kimbro Congrats on your STR property, nice cash flow for sure.

Good paint is $50-$60 a gallon and covers 350-400 sq ft.

This helps determine if I would be responsible for covering those costs.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I profited well but not enough to cover 6 months if they were all slow months.

So you must cover that 10%, holding costs, and have reserves for overruns.