To calculate the Rental Cash Flow (RCF):
RCF=R×OR−M−TI
Where:
Rental cash flow is defined as the total cash generated each month from a rental property after monthly costs have been subtracted.
Let's assume the following values:
Using the formula:
RCF=2000×0.94−1000−200=680 dollars per month
The Rental Cash Flow is $680 per month.
Let's assume the following values:
Using the formula:
RCF=1500×0.94−800−150=470 dollars per month
The Rental Cash Flow is $470 per month.