Cash flow should be calculated as income after expenses, which should include debt, taxes, insurance (the classic PITI) as well as prudent allowances for vacancy, repairs and capital expenses.

All in the comps:#1 Raise the Monthly Rent#2 Minimize Vacancy Rates#3 Provide More Living Space#4 Add an Extra Bathroom#5 Add Extras to Your Real Estate Investment Property#6 Curb Appeal

You need to calculate your net cash flow taking mortgage, property tax, maintenance, vacancy, insurances, property management, utilities and whatever other cost you have into consideration, it should cash flow after paying all these costs( and personally I also stress test whole thing with lower rent and higher interest rates just to be sure).

You will also have vacancy, capex etc which should run you between $600-$1000 per month, so you are looking at a very large negativeIf you want to live there to save money that is one thing, but to move out and use as a rental later on will be a huge cash suck on you.

I own a 20-unit complex which is managed by Appfolio, so it distributes the vacancy to various sources.

Zero vacancies are good!!!!!!

There are many more variables that you need to consider.hold timecash flowdown pmtmaintenance/vacancy costsIns costHOATaxes/MUD/PUDYour short/long term strategyAssets/income+ lots moreNewer homes usually equal less appreciation/cash flow for a number of reasons.

Take a look at rental vacancy rate and past 5 years appreciation of the properties in each location that you would consider.

Every broker’s OM is different, but it’s typically an analysis of the surrounding area, their version of the financials, their version of a pro-forma (how they think the property will operate after you renovate or purchase the property), what they believe the cap rate to be if purchased at asking and if all their numbers are correct, pictures of the property, current property vacancy rate, etc. - Property Tax Information.

These could be areas they are familiar with (grew up there, have family there, etc) or areas where houses are less expensive, vacancy rates are low.