Income property: what cash flow remains after expenses and debt?
Rental property cash flow subtracts operating expenses and the mortgage payment from rent. It uses property-specific NOI and CAP Rate terms.
Income property
Calculation
Uses income-property terms, including NOI, CAP Rate, and mortgage payment.
| Input | Value |
|---|---|
| Monthly rent and other income | $8,500 |
| Monthly property operating expenses | $3,100 |
| Monthly mortgage payment | $3,850 |
- Formula
- $8,500 - $3,100 - $3,850
- Result
- Estimated monthly cash flow is $1,550.
- What it means
- The calculation leaves $1,550 per month before estimated tax and other property cash needs.
Rental cash-flow cautions
The result does not include vacancy, reserves, capital repairs, tax changes, or closing costs. Add complete property assumptions in a free Indevest account before relying on the cash-flow result.