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How to Calculate the Numbers on a Rental Property – Estimating Cash flow

How do you figure out if the numbers will work with a potential rental property?

In this video, I will focus on cash flow and real estate math. A real estate investor makes their decision on whether they have a good deal by the numbers. I will cover 5 things to keep in mind when you calculate your estimated cash flow on a potential real estate deal.

[0:40] Defining a good deal by cash flow

[1:41] #1: Set a financial objective per door

[2:41] #2: Don’t underestimate variable expenses

[3:39] #3: Validate utility costs

[4:26] #4: Be conservative with fixed expenses

[5:26] #5: Validate the seller’s assumptions

[6:18] “Back of the envelope” tip for cash flow

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