Rental Cash Flow with 8% Vacancy: $1,800 Rent, $1,100 Mortgage
A $1,800/month rental property at 8% vacancy with a $1,100 mortgage and $350 monthly expenses produces modest positive cash flow.
How to use this tool
- Enter the gross monthly rent at full occupancy.
- Set a realistic vacancy and credit-loss percentage.
- Add any other monthly income (parking, laundry, fees).
- Enter monthly operating expenses, including reserves, EXCLUDING the mortgage.
- Enter the monthly mortgage payment (principal + interest) and read the cash flow.
See how an 8% vacancy rate affects the monthly cash flow of a $1,800 rental with a $1,100 mortgage payment.
Frequently asked questions
- What counts as good cash flow?
- Many investors look for at least $100-$200 of positive monthly cash flow per unit after all expenses and reserves, though targets vary widely by market and strategy. The key is that the number is positive after honest, fully-loaded expenses.
- Should I include property management and reserves?
- Yes. Even if you self-manage today, budget for management and for capital reserves so the analysis survives a vacancy, a turnover, or a major repair. Omitting them is the top cause of surprise negative cash flow.
- Is cash flow the same as profit?
- Not exactly. Cash flow is the actual money in and out. Accounting profit also reflects depreciation and other non-cash items. For a buy-and-hold investor, monthly cash flow is usually the more practical figure.