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Rental Income, Expenses, Reserves & Cash Flow
Project income, expenses, and what remains. NOI, vacancy, operating expenses, and cash flow.
Lessons
01
How to Calculate Net Operating Income (NOI)
NOI is the single most important number in rental property analysis. It measures the property's operating income before financing and taxes — and it's independent of how you paid for the property.
02
How to Build a Rental Property Cash Flow Projection
NOI measures the property. Cash flow measures what remains for the investor after financing and reserves. Here's how to build a projection step by step.
03
Understanding Cash Flow vs. Appreciation
Cash flow and appreciation are two different ways rental properties make money. Understanding the tradeoff between them helps you choose the right strategy for your goals.
04
What Expenses Should You Include in Rental Property Analysis
Underestimating expenses is the most common mistake in rental property analysis. Learn the full expense list — including the ones investors forget.
05
How to Estimate Vacancy and Reserves
Vacancy and reserves are the two most underestimated costs in rental property analysis. Learn how to estimate them with evidence, not optimism.
Formulas
Net Operating Income (NOI)
NOI = Gross Collected Income − Operating Expenses
Cash-on-Cash Return
Cash-on-Cash = Annual Cash Flow ÷ Cash Invested
Cash Break-Even
Break-Even = (Debt Service + CapEx Reserves) ÷ Gross Collected Income