Updated about 8 years ago on . Most recent reply

Please help me as I am unclear on a concept.
Okay so I have analysis down pretty good but just some aspects are unclear to me about the actual process of how you separate the incoming cash between repairs and cash flow. I'll give a scenario because it's hard to explain.
So let's say I have a property that gets me $1000 in rent a month. My expenses are only a mortgage as the tenants pay everything else. Mortgage is $300 a month. So I would get $700 into my bank account. From there I need to set aside the proper amount each month for repairs and capex (from a good analysis). What is left over is my actual cash flow correct?
I'm sure this is how it is but I just need it explained to me to sort of solidify it in my brain.
Thanks again BP community!