BiggerPockets Real Estate Podcast How to Calculate Cash Flow on a Rental Property
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Dec 12, 2025 In this engaging discussion, Ashley Kehr, co-host of the Real Estate Rookie podcast and seasoned rental investor, joins to demystify cash flow calculations. She reveals why 99% of investors botch the math and shares expert insights on estimating fixed and variable expenses. Learn how small tweaks can enhance your cash flow and what constitutes a solid deal. Plus, Ashley provides tips on setting aside emergency reserves and understanding property management fees to maximize your investment potential!
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Live Deal: 1890 Duplex Example
- Dave discusses a real 1890 duplex listed at $350,000 he's analyzing live.
- He plans modest rehab spending of about $18,000 to raise rents closer to $2,000 per side.
Adjust Repairs For Age And Rehab Plan
- Increase repair percentages for older properties or if you won't renovate.
- Lower repair assumptions if you plan targeted upfront rehab to preempt common failures.
Include Stabilization Vacancy
- Account for renovation vacancy and include that cost in initial repair reserves.
- Use a higher first-year vacancy to reflect planned renovation downtime.