Why Your Rental Property Looks Profitable on Paper But Bleeds Cash Every Month — and How to Fix It
Seller pro formas are notoriously optimistic: zero vacancy, understated maintenance, and ignored capital expenditure reserves are the most common culprits that turn 'positive cash flow' deals into monthly subsidies. This post walks investors through a rigorous, realistic cash flow analysis framework — covering effective gross income, vacancy factors, CapEx reserves, and management fees — and shows how the same property can look like a winner or a loser depending on which assumptions you use. The post closes with a portfolio audit checklist investors can apply to every property they already own.