Metrics
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month.
How it's calculated
Cash Flow = Rent − Operating Expenses − Mortgage PaymentExample
$2,000 rent − $400 expenses − $1,200 mortgage = $400/mo cash flow = $4,800/yr.
Why Monthly Cash Flow matters
Monthly cash flow is what funds your life. Wealth-building investors weight IRR; income investors weight monthly cash flow.
Related terms
Cash-on-Cash Return
Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
NOI (Net Operating Income)
Gross annual rent minus all operating expenses, before debt service and income tax.
After-Tax Cash Flow
Monthly cash flow plus estimated monthly tax savings from depreciation. The real number that hits yo…