Investing
Rental Cash Flow Basics for First-Time Investors
8/18/2025 · 7 min read · SREG Investment Desk
A straightforward framework for evaluating rent, expenses, reserves, and expected cash flow.
Key Takeaways
- Use realistic expense assumptions.
- Underwrite for vacancy and maintenance reserves.
- Focus on durable monthly performance, not best-case projections.
Start with conservative gross rent assumptions based on local comparables, not best-case listings.
Include taxes, insurance, repairs, turnover costs, vacancy, and property management in your model.
Stress-test cash flow against higher interest rates and lower-than-expected rents.
A resilient deal works under pressure and still aligns with your long-term return target.