How to Calculate Cash Flow

Episode 7 - How do you Calculate Cash Flow to Know if You Have a Deal

http://www.thereiminute.com/how-to-calculate-cash-flow/

Adam had a good question regarding what goes into calculating cash flow on a rental property.

"When investors talk about a property cash flowing, does that mean at 20-25% down payment? What if you put down 30 40 60 etc."

Analyzing cash flow has been up for debate by many investors for a long time. We prefer to take a more conservative approach and make sure we include all of our one time and recurring expenses when we calculate cash flow. The one thing it doesn't do though is tell you if one deal is better than another. Instead it is more of a minimum criteria calculation to quickly weed out properties that don't make the cut.

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