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Weekly What-If Lab

How much rental income is really retirement income?

Subtract empty months, property bills, and repair savings from rent. See what may truly be left to spend.

6-minute labEducational illustration
Try your version

Gross rent is visible. The costs are what make the answer real.

Move one slider at a time. The numbers and picture update together.

$3,200
1,00010,000
22%
545
7%
025
8%
025
$900
05,000
Estimated net cash flow$1,116monthly before income tax
Annual net cash flow$13,392assuming the average holds
Rough savings equivalent$334,800uses the same 4% starting rule
Gross rent flowing through property costs to net cash flowGross monthly rent is reduced by operating costs, vacancy and repairs, then by the mortgage payment.Gross $3,200WHERE THE RENT GOES EACH MONTHOperating, vacancy, repairs: $1,184Mortgage: $900Net $1,116

This shows cash in and cash out. It does not calculate rental taxes, a future sale, property growth, tax write-offs, or the tax cost of major improvements.

Find the true paycheck from each property

Start with rent collected. Subtract empty months, management, taxes, insurance, upkeep, large repairs, owner-paid bills, and the mortgage. Skipping costs makes the income look too high.

Repair savings are cash you do not spend. Roofs, heating systems, and appliances will need work someday.

Test a bad year

Run the lab for a normal year. Then add an empty period or a large repair. If every month must be perfect, you may need more cash or a lower spending goal.

This lab does not calculate rental taxes. IRS rules depend on how the property is used and many other facts.

Verify before you act

These official resources provide background for the concepts in this illustration:

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