Does Cash Flow Increase as Rents Annually Increase?

[Gabriel Hernandez]

Hello, I’m a new poster and investor from Phoenix, AZ. It seems the general data shows that rents have gone up about 3% per year over the last 30 years. If I own a rental now that cash flows about $200 a month, will it’s cash flow increase each year as rents go up about 3% per year? Maybe there will be years ahead where the rent grows less than others but it seems that the 3% average growth accounts for this. I understand that inflation will also drive expenses up but it seems like that still wouldn’t be able to keep up with rent growth. I typed in my rental into the BP cash flow calculator and it supported this theory. It showed that cash flow goes up every year because of the rent growth. I would love to hear input on this.