09/22/2026
How to check if a property cash flows💰 And what your net operating income is.
First you find out what the units would rent for... DON’T sell yourself short! A lot of people don’t realize the rental potential of their units. Once you get these numbers, you’ll be able to get your Annual Gross Income(AGI). (Monthly rent x 12 = AGI)
Then, find out what your PITI payment is... PITI Stands for Prinicpal, Interest, Taxes, Insurance.
Finally, find out what your yearly expenses are, this includes maintenance, capex, vacancy, water/sewer, landscaping/snow removal.
Now, take your yearly expenses, yearly PITI and subtract it from your AGI... that gives you your properties yearly cash flow.