Financial Success Starts Here: Demystifying Rental Property Calculations

By Joshua Holt

Meet Joshua, a licensed real estate professional and accomplished broker. As the forward-thinking leader of the Holt Real Estate Team, he has forged a strategic alliance with Keller Williams and PLACE to deliver on Our Promise.

So, you’re interested in calculating the numbers for a rental property investment? Today we’re here to break it down for you. Real estate investments can be lucrative, but not all properties are created equal, so it’s crucial to make financially sound decisions. The key lies in running the numbers.

Start by determining your rental income, operating expenses, and mortgage payment. Expenses can be tricky, but we’ll help you navigate through them. Consider vacancy, property management fees, leasing costs, repairs, insurance, taxes, and utilities, among others. Now, let’s do the math.

Calculate your net operating income by subtracting expenses from rental income. That’s your net income. Then, deduct your mortgage payment to find your cash flow. If both numbers aren’t positive, it’s best to steer clear. That property might not be the right investment for you.

Real estate investing can be complex, so seeking guidance from experts like us is wise. Our team is here to provide advice tailored to your needs. Let us help you determine if real estate investing aligns with your goals and identify the right properties to consider. Reach out to us today for expert guidance on your real estate journey.