One of the biggest questions new real estate investors ask is, ”how much should a rental property cash flow.” This video explains how to find the cash on cash return of a rental property. It goes into detail about how much cash flow a rental property should produce based on how much is invested in that rental property. Chandler will briefly discuss the expenses that should be looked at when determining cash flow and how to determine what a good cash flow is. He will break down exactly how to view a rental property and what numbers are important when deciding if it is a worthwhile purchase. He will discuss how the calculation of rents – expenses – loan payment = cash flow. Once you know how to calculate cashflow then you divide your cashflow by your initial investment to determine your cash on cash return. Many investors choose to purchase investment properties with little or no cashflow. However, Chandler suggests that the best way to purchase investment properties is to make sure that they can produce atlas a 10% cash on cash return within the first year of purchasing them. He also goes into detail about how renovations and down payments affect these calculations. this video was made yo help anyone understand how much a rental property should cash flow. For further information about how to calculate the returns on a rental property click the link below.
How to run the numbers on an investment property.
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