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General Landlording & Rental Properties

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Mark Forest
  • Real Estate Investor
  • Fenton, MI
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Is positive cash flow possible?

Mark Forest
  • Real Estate Investor
  • Fenton, MI
Posted Apr 20 2009, 14:37

After you pay the 50% operating expenses and principal/interest on your mortgage debts do many of you still manage to have positive cash flow or are you all hoping the property will just appreciate?

Here is a test formula I have read about:Rents received (Schedule E)- Rental expenses (Schedule E)- total principal and interest mortgage payments (12 x monthly payment) - total basis (cost) of all improvements and replacements added that year (Form 4562) = true cash flow

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