What Is Cash Flow for a Rental Property? | Insight from Kitsap Real Estate Expert Bre Enbom

Cash flow is one of the most important concepts in real estate investing, especially for rental property owners on the Kitsap Peninsula. Simply put, cash flow is the amount of money left over each month after all rental income is collected and expenses are paid.

Kitsap Peninsula real estate expert Bre Enbom explains that positive cash flow means your rental property earns more than it costs to operate, while negative cash flow means you are paying out of pocket to cover expenses. For many investors, positive cash flow is the goal because it creates ongoing income and financial stability.

To calculate cash flow, start with your total monthly rental income. Then subtract all operating expenses. These typically include your mortgage payment, property taxes, insurance, maintenance, repairs, property management fees if applicable, utilities paid by the owner, and reserves for future expenses. What remains is your cash flow.

For example, if a rental home in Bremerton brings in two thousand five hundred dollars per month and total expenses equal two thousand one hundred dollars, the property produces four hundred dollars in positive monthly cash flow.

Cash flow is especially important in markets like Port Orchard, Silverdale, Poulsbo, and Bainbridge Island, where rental demand remains strong due to military presence, ferry access, and proximity to Seattle. Strong cash flow allows investors to weather market shifts, vacancies, or unexpected repairs.

Bre Enbom advises investors to look beyond just the purchase price and focus on long term numbers. A property with slightly lower appreciation potential but strong monthly cash flow can outperform a higher priced home that barely breaks even. Investors should also consider future rent growth, tax benefits, and equity buildup as part of their overall return.

Understanding cash flow helps investors make smarter decisions, avoid overleveraging, and build sustainable rental portfolios. Working with a local real estate professional ensures accurate rent estimates and realistic expense projections based on the Kitsap County market.

If you are considering investing in rental property, Bre Enbom provides local insight to help you identify opportunities that align with your financial goals.