If you're talking about rentals, then you subtract the operating expenses and the mortgage payment from the gross rents to get cash flow.

The only problem is that you omitted nearly ALL of the operating expenses.

All things are relative with regards to any lease that is the so called "net" format vs those that are "gross" or "modified gross".The term net lease has been chopped up over the years to include "net - N", "double net - NN", or "triple net - NNN".N - generally refers to the actual property operational maintenance costs.NN - generally refers to the property maintenance and limited other costs, i.e. adding in insurance or RE taxes or some other limited set of items.NNN - generally refers to all associated property operational costs.For clarification a "net lease" means that the tenant is fully responsible for some or all of the property's operational items; On the other end of the spectrum is the "gross lease" which means that the owner is fully responsible for the operational items; "a modified gross lease" is a combination of the two and usually includes an expense stop for the tenant.Expense stop means the owner is responsible for all costs up to that point, i.e $3.75 per sf per year, and the tenant is responsible for the pro rata difference over that amount.

If you have ever read a standard note and trust deed used by mortgage lenders, I would bet a good attorney could find 20 things many home owners are breaching in their agreement on a regular basis… i.e. parking commercial vehicles, or operating a business from the premises...

Operating a business is about making money, not helping deadbeats to steal from you.

I've worked for a national hard money lender and wholesaler for the past 4 years and am currently seeking to start my own firm here in the Charlotte area.I worked through college as an auto mechanic which pretty much cements the fix-it mentality i have.I was also the operations director at a large outdoor amphitheater for almost 5 years and that has to be one of the most abused pieces of real estate in town.

There are tons of ways to get started like you said but if you want to do this fulltime and operate a true business then ultimately you have to be able to manage your your money and credit and you need cash for unexpect circumstances.

I work for the Metropolitan Transit Authority as a train operator.

immediately call your lender and give them the contact info needed to schdule their required operations.

Wheatie often says that the operating expenses can be OVER 50% and this property is a prime candidate for that.