Cash Flow Leveraging

Cash flow leveraging is about how borrowing can impact your cash flows from your rental properties.

The first important thing to understand in cash flow leveraging is the capitalization rate. It is important to know how much the property is paying you. In its simplest form capitalization rate is the net rental income from the property divided by the purchase price.

Let us say you buy a property for $100,000. Let us assume gross income from this property is $14,000. Total expenses that

Cash flow leveraging is about how borrowing can impact your cash flows from your rental properties.