Rental property cash flow is one of the most important metrics to calculate when analyzing real estate. Your cash flow not only helps you make a little extra money every month but also keeps your property afloat during months of heavy expenses or when large repairs need to take place. If you don’t do the correct cash flow calculations, you could find yourself with a cash-hemorrhaging property.

This is why running (and re-running) your “true cash flow” number is so important. It’s also what Pam, today’s guest, might need to do to figure out which rentals to sell and which to keep in her portfolio. Pam owns nine rental properties, which is doubly impressive since she declared bankruptcy just a decade ago. She’s been able to rebuild a financial position that many would envy. And even though Pam and her husband make a great income, they’re struggling to figure out where it’s going every month.

As six-figure earners, they’re barely breaking even on some months and overspending on others. Is Pam being too relaxed with some of her budget categories, or is there another cash flow leak coming from somewhere she isn’t looking? Scott and Mindy go through Pam’s current financial situation and quite quickly come up with a solution that could save her thousands every month.

~~~~
Show Notes at:
https://www.biggerpockets.com/blog/mo...
~~~~
Join the BiggerPockets Money Facebook Group:
  / bpmoney  
~~~~
Try the BiggerPockets Calculators on Your Next Property:
https://www.biggerpockets.com/investm...
~~~~
Get Unlimited Access to BiggerPockets Tools and Calculators by Upgrading to Pro:
https://www.biggerpockets.com/members...
~~~~
Follow Along Mindy’s Live Budget/Expense Tracker:
https://www.biggerpockets.com/mindysb...
~~~~
How to Run a Rental Property Cash Flow Analysis:
https://www.biggerpockets.com/blog/re...
~~~~
Want to Be a Guest on the BiggerPockets Money Show? Apply Here:
Guests: https://www.biggerpockets.com/guest?u...
Finance Friday: https://www.biggerpockets.com/finance...
~~~~
Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/s...
Mindy: https://www.biggerpockets.com/users/m...

Episode 322

00:00 Intro
04:14 Income and Expenses
12:05 Assets and Liabilities
13:25 From Bankrupt to Buying 9 Rentals
19:18 Recalculating Your Rental Property Profits
39:50 Selling the Properties That Don't Work
47:37 Fixing a Low Cash Flow Situation
01:00:17 Reevaluating Your Rental Portfolio

#biggerpockets #biggerpocketsmoneypodcast #ep322