Cash Flow Isn’t Just Rent Minus Mortgage

[Ky Perry]

One thing I’ve picked up from others is to always budget for vacancy, maintenance, and property management — even if you self-manage. It makes the deal way more realistic and helps avoid surprises down the road.

[Chris Seveney]

Not only do you need to account for it but you need to actually calculate it. Many people will just use industry, standard information, but a property that is newly renovated in a class. A area will be very different than an older property in a class C area. Another example is what is the life expectancy on major items to amortize how much you need to save before it needs to be replaced.