Paying cash for a rental property comes with extra benefits. Namely: 1. Cash payments tend to lead to much quicker purchases and closing can often take place directly after an inspection. 2. Further, cash offers typically carry more weight with sellers, thus making you more competitive. 3. Finally, your closing costs are lower as well.
To calculate a rental property’s cash flow, take the following steps: 1. Determine the property’s gross income. 2. Subtract all of the property’s expenses. 3. Subtract all of the property’s debt service.