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Rental Cash Flow Analysis
How to Stress-Test a Rental Before You Buy
A property that pencils at today's rent and zero vacancy will bleed at 8% vacancy and a roof replacement. Build the analysis at three layers: (1) gross rent minus all PITIA (principal, interest, tax, insurance, association), (2) minus 8% vacancy, 8% maintenance, 10% capex reserve, 10% management — even if you self-manage, (3) stress at –10% rent and +1% rate. Anything that still cash-flows after layer 3 is a real deal. Anything that only works at layer 1 is a trap. I've seen investors buy at –$300/month "knowing" rent will appreciate; appreciation is a bonus, not a thesis.
Send me a deal and I'll run all three layers — no obligation.
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