Evaluating Cash Flow on a Prospective Investment Property | Rentest.ai
September 7th, 2025
Before purchasing a rental property, it’s essential to run the numbers and ensure the investment meets your financial goals. A key part of this process is evaluating cash flow—how much money is left after accounting for income and expenses. With Rentest.ai, you can quickly calculate rental income, analyze comps, and generate branded rent reports that help you make confident investment decisions.
Calculating Rental Income
Estimating potential rental income is the foundation of cash flow analysis. Tools like Rentest.ai’s Rent Estimate by Address provide instant data-driven projections for specific properties.
With a branded rent report, you’ll see average, median, and percentile rents, along with historical rent trends formatted into easy-to-read visuals. This gives you the insights you need to understand the rental market and set competitive prices.
Why Rental Comps Matter
Accurate comps are one of the most important parts of evaluating a property’s rental potential. Rentest.ai’s rental comps show you similar properties on an interactive map and provide detailed data for side-by-side comparison. You can also export comps into CSV format for deeper financial modeling.
By analyzing these comps, you can perform due diligence quickly and determine whether the projected rental income aligns with your expectations.
Key Considerations for Cash Flow
When running cash flow calculations, be sure to factor in more than just rent. Here are the main components:
1. Gather Financial Data
- Rental Income: Use rent estimates by ZIP code or address to project income.
- Operating Expenses: Property taxes, insurance, repairs, maintenance, property management fees, and utilities.
- Mortgage Payment: Principal and interest if financing the property.
2. Vacancy Rates
No property is occupied 100% of the time. A typical vacancy rate is 5–10%, but it depends on location and property type.
3. Tax Implications
Rental income, expenses, and depreciation all affect your taxes. Consult with a tax professional to understand potential deductions and liabilities.
4. Periodic Reviews
Cash flow changes over time as markets shift and expenses rise. Regularly update your analysis to keep your investment on track.
Why Cash Flow Analysis Matters
Evaluating cash flow correctly helps you avoid costly mistakes and ensures your property remains profitable. By using Rentest.ai to generate accurate rent estimates and comps, you’ll have the data you need to make smarter investment decisions.
Take the Next Step
With Rentest.ai Pro, you’ll gain access to deeper comps, branded rent reports, and investor insights designed to maximize profitability. You can also use our lead generation tools to connect with prospects and our API to integrate rent estimates into your workflow.
Ready to evaluate your next property with confidence? Try Rentest.ai free today.