Investment property: rent is only the beginning of the numbers.

Is rent minus the mortgage payment enough?

That is a starting point, but it leaves important questions unanswered. Build an operating budget that includes property taxes, insurance, management, maintenance, vacancy, and expenses you expect to pay as the owner. Keep a separate allowance for larger repairs.

Try a simple scenario

Suppose an illustrative property rents for $2,500 a month. A 5% vacancy allowance leaves $2,375. Subtract $650 of operating expenses, a $200 repair reserve, and a hypothetical $1,500 principal-and-interest payment. The illustration leaves $25 a month. These assumptions are examples, not local rent estimates or a financing offer. Changing one expense can change the picture quickly.

Cash flow and qualifying income are different questions

A lender does not necessarily use all advertised rent as qualifying income. Fannie Mae’s rental-income guidance includes documentation and eligibility conditions, and the treatment may depend on the property and borrower’s experience. Other financing paths can have different requirements.

Bring both stories to the conversation

Bring your operating assumptions and ask how the proposed rent would be evaluated for the particular loan. Also discuss your other properties, cash available after closing, and plans for the investment. Use the rental cash-flow calculator to organize your assumptions, then talk with Andy about the financing questions.