A practical example showing how rent, taxes, insurance, vacancy, maintenance, and debt service determine whether a rental really works.
Illustrative rent: $1,150 per month. Example taxes: $220. Insurance: $90. Maintenance reserve: $150. Vacancy and management allowances must also be counted.
Many buyers stop at rent and mortgage. Real cash flow only appears after taxes, insurance, maintenance, vacancy, and management are included.
A property can look affordable and still produce weak cash flow. Margin matters.
