The Real Estate Cash Flow Formula (Everyone Gets This Wrong)

The Real Estate Cash Flow Formula (Everyone Gets This Wrong)

Land More Off-Market Deals with Crucial Property Owner Contact Information from DealMachine:
https://www.dealmachine.com/BPYouTube

Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media

Grab Dave’s Book “Real Estate by the Numbers”:
https://store.biggerpockets.com/products/real-estate-by-the-numbers?utm_source=youtube&utm_medium=description&utm_campaign=none

Property Manager Finder:
https://biggerpockets.com/findapm

Try the BiggerPockets Rental Property Calculator for Free:
https://www.biggerpockets.com/rental-property-calculator?utm_source=youtube&utm_medium=description&utm_campaign=none

Connect with Dave:
https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none

There’s a VERY easy way to calculate real estate cash flow for rental properties, but most people get this wrong. The formula is so simple that you could run an accurate cash flow analysis in minutes. But, if you skip on some of the critical factors in the formula (like most people do), you could end up with a rental property that is not only NOT making any cash flow but COSTING you money every single month. So, what’s the cash flow formula?

Dave literally wrote the book on real estate formulas (linked above), so today, he’s walking you through the three steps of calculating real estate cash flow. Do this before you buy any property or risk getting a bad deal. Dave also shares the exact cash flow and cash-on-cash return requirements he shoots for when purchasing an investment property and when a property’s cash flow is too low to move forward!

00:00 How to Calculate Cash Flow
03:04 Rental Property Expenses
04:44 1. Debt Service
07:08 2. Repairs and Maintenance
10:05 3. Property Management
11:40 DON’T Ignore This
13:27 What is Good Cash Flow?
17:00 Sponsor: DealMachine!


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top