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How can I figure out how much of an investment property to buy in order to produce a positive cash flow?


Is there a software program or an equation to figure out how much down payment to put on a property, given the amount of rent income anticipated, minus all the expenses (taxes, upgrade, etc.) to produce at least a balanced or even a positive cash flow?

538 day(s) ago

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MariaT 		There are a bunch of free calculators online at http://www.fivestarsmortgage.com/mortgage-calculators/.

Now is a really good time to buy investment properties. Perhaps the best buyers market I've ever seen.

Posted 538 days ago

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LoveDukeDog 		Quicken.com

Posted 538 days ago

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BruinCPA 		1) Find out what the property costs. Figure out how much you need to put down. Find out what the loan payment (principal & interest) will be on the balance - use a financial calculator. Figure out your total monthly cost by adding payments for property tax, homeowner's insurance, HOA fees, and management fees.

2) Figure out how much rent you can get for the property. Now make an allowance for vacancies, subtract your total monthly cost, and this is will be your cash flow. Keep in mind that even if you have a positive cash flow, after depreciation you may have a deductible tax loss.

There's no way to simplify the math - you've got to do the calculations for each property to determine whether or not it'll work. Good luck.

Posted 538 days ago

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