Series · 7 articles

Turn rental numbers into decisions

Articles in reading order

1. 

   Part 1

   If you track only a few rental metrics, start here

   Build a small rental review around cash, reserves, collections and debt coverage. Connect changes to useful questions and proportionate next steps.

2. 

   Part 2

   Good cash flow, low cash-on-cash return: what should you ask next?

   Investigate positive cash flow with a modest cash-on-cash return by checking costs, invested cash and current equity before choosing a financing change.

3. 

   Part 3

   Negative operating cash flow, strong estimated XIRR: is the property working?

   Test cash-funding needs behind a strong estimated rental XIRR. Compare net exit values, a delayed sale and a loss case without mistaking forecasts for cash.

4. 

   Part 4

   Keep or sell a rental: compare the next chapter, not just the past

   Compare keeping and selling a rental over the same future horizon. Include net proceeds, reinvested cash, debt, costs and clearly labelled tax sensitivities.

5. 

   Part 5

   Buy another rental or stabilize the portfolio first?

   Test the cash, reserves, shared risks and management demands of another rental. Compare annual coverage with the dated funding needs after purchase.

6. 

   Part 6

   Put more money into an existing rental: repair, improve, or pay down debt?

   Separate necessary repairs from optional improvements and debt reduction. Compare full project cash needs, incremental income and less favourable outcomes.

7. 

   Part 7

   Take out equity or leave it in the property?

   Model equity borrowing as a new debt decision. Check net cash after fees, full loan payments, reserves, investment risk and the use-of-funds tax question.