Is positive cash flow possible?
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