Analyze Rental Deals Fast with Cash Flow

Most beginners lose money in real estate for one simple reason. They never run the numbers.

Here’s how to analyze a rental deal fast. First, find the monthly rent.

Let’s say it’s two thousand dollars. Next, subtract your main expenses.

Mortgage, taxes, insurance, repairs, and vacancy.

A quick rule is to set aside about forty percent for expenses. So two thousand

times forty percent is eight hundred dollars. That leaves you with twelve hundred.

Now subtract your mortgage. If that’s nine hundred a month, you’re left with

three hundred dollars. That’s your cash flow. If the number is positive,