Calculate your true net cashflow from any rental property, after mortgage, taxes, social charges and deductions. Know your real return before you invest.
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A rental property's cashflow is the money left after paying all expenses: mortgage, taxes, insurance, maintenance, and vacancy reserves. Positive cashflow means the property generates income each month; negative cashflow means you are subsidizing it out of pocket.
The key metrics investors use are gross yield (annual rent divided by property price), net yield (after all costs), and cash-on-cash return (annual cashflow divided by your down payment). A cash-on-cash return above 8% is generally considered strong in most US markets.
Tax treatment varies significantly. In the US, mortgage interest is typically deductible against rental income, which can substantially improve after-tax returns. Depreciation, property tax, and operating expenses also reduce your taxable income.
Related tools: Mortgage Calculator, Rent vs Buy Calculator, Property ROI Calculator