Free tool from McKee Properties
Cash flow is the rent you actually collect minus every cost of owning the home as a rental. Enter your own numbers below; the calculator does not assume any rents, rates or fees, so the result is only as good as the figures you put in. For a rent estimate on a Coronado home, ask for a free rental analysis.
Cash flow is not taxable income: depreciation, mortgage interest and other items change the tax picture. This is general information, not tax or financial advice.
Costs owners often forget
- The homeowners' exemption. It comes off once the home is no longer your main residence, which raises the tax bill. The owner must end it; December 10 is the last day to end it without penalty.
- Insurance changes. A homeowners policy may no longer fit once you rent the home; ask your insurer or broker what coverage a rented home needs. See landlord insurance for a Coronado rental.
- Turnover. Cleaning, painting and repairs between tenants, plus the weeks a home sits empty.
- Out-of-state owners. If you live outside California and a property manager collects your rent, the manager generally must withhold 7% of rent paid to you for the state (FTB Publication 1017), unless an exemption or waiver applies.
The full list is in what it really costs to rent out a Coronado home.
Frequently asked questions
What vacancy rate should I use?
Use your own estimate based on how long similar homes near yours take to rent and how often tenants turn over. The calculator leaves it blank on purpose rather than assume a figure.
Should I include principal in the mortgage payment?
For cash flow, yes: principal and interest both leave your account each month. For taxes, only the interest is treated as an expense, which is one reason cash flow and taxable income differ.
Where do I get the management fee?
From a written quote. Fee structures vary by company and service level; see what property management costs in Coronado for the fee types to ask about.
Related
