Cash flow in real estate is the net income your property generates monthly after all expenses—rents minus mortgage, taxes, insurance, maintenance, HOA fees, and vacancies—positive cash flow ($200-$500 typical per door) builds wealth steadily for investors in Denver’s stable Colorado housing market.
Calculating Cash Flow Basics
After 15+ years in Denver real estate and thousands of transactions, I crunch cash flow as total rents minus operating expenses (50% rule quick check: half rent covers all costs except mortgage), debt service, and capex reserves (1% of value yearly). A $600K duplex renting $4,000/month at 6.25% loan yields $1,200 PITI, $800 other costs—$2,000 left nets $500/month after vacancy buffer. Scale via 1% rule (rent =1% purchase price) for screening. Leverage boosts returns but risks negative flow on refis.
Track via spreadsheets—pro formas lie.
Denver-Specific Cash Flow Plays
Highlands Ranch real estate near Mountain Vista schools delivers $300-$600/unit after HOA ($150-$400/month), drawing stable families for low turnover. Littleton bungalows net $400+ sans heavy fees, budgeting clay pipe upkeep. Core Denver multifamily hits $800/door amid urban demand, condos $200 after reserves. Market cycles lift spring rents 5-7%, steady winters via relos. Douglas County single-families flex higher ($500+) on acreage; compared to Littleton flexibility, Highlands Ranch covenants stabilize but trim margins slightly.
Walk scores add 10-15% premiums.
Practical Advice for Buyers and Sellers
| Metric | Target | Quick Calc |
|---|---|---|
| Monthly Cash Flow | $250+/door | Rent – 50% – PITI |
| 1% Rule | Screen fast | Rent >=1% price |
| Cap Rate | 6-8% | NOI / Price |
Investors, use 50% rule first—verify comp rents, stress-test 10% vacancy; scale post-positive.
Sellers to rentals, highlight flow in listings—price for 7% cap rates.
My hands-on, concierge-level service models cash flows block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for positive plays. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic fuel sustainable portfolios.
If cash flow questions drive your Denver real estate investing—Littleton, Highlands Ranch numbers—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.
Mile High Home Group - Welcome to Denver 
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