Cash Flow

2 Replies

How do you calculate cash flow? I know the formula (Gross income minus operating expenses minus loan payments equal net cash flow) but can someone fit a real life scenario in this equation?

The cash flow formula that I use:

1000/mo rent - R

80/mo vacancy - V

100/mo maintenance - M

80-100/mo property management - PM

PITI – principal, interest, taxes, insurance

Cash flow = R-V-M-PM-PITI

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