How to Calculate Monthly Cash Flow on a Rental Property

Cash flow is the money left in your pocket after ALL expenses are paid. Not revenue minus mortgage. ALL expenses. Most landlords overestimate their cash flow by $200/month because they forget about vacancy, maintenance reserves, and management costs.

The Formula

Monthly Cash Flow = Gross Rent - Mortgage - Taxes - Insurance - Maintenance Reserve - Vacancy Reserve - Management Fee

Real-World Example

Rent: $2,000. Mortgage: $1,200. Taxes: $300/mo. Insurance: $125/mo. Maintenance (5%): $100/mo. Vacancy (5%): $100/mo. Management (0% if self-managed, 10% if hired): $0-200. True cash flow: $175-375/month. Not the $800 you thought when you just subtracted mortgage from rent.

The Bottom Line

Mozongi REMA calculates net cash flow automatically including taxes, insurance, and mortgage. The dashboard shows your REAL number, not the optimistic one.