To calculate the Rental Cash Flow (RCF):
\[ RCF = R \times OR - M - TI \]
Where:
Rental cash flow is defined as the total cash generated each month from a rental property after monthly costs have been subtracted.
Let's assume the following values:
Using the formula:
\[ RCF = 2000 \times 0.94 - 1000 - 200 = 680 \text{ dollars per month} \]
The Rental Cash Flow is $680 per month.
Let's assume the following values:
Using the formula:
\[ RCF = 1500 \times 0.94 - 800 - 150 = 470 \text{ dollars per month} \]
The Rental Cash Flow is $470 per month.
