A good measure of a (buy-to-let) BTL’s cash flow is the rental yield. To achieve a healthy cash flow for your BTL property, it’s important to aim for rental yield values of at least 5%. But what does that actually mean for your bottom line?
Understanding cash flow helps you determine if your rental property is profitable and worth keeping. In this article, we’ll cover what cash flow is, why it matters, and how to calculate it for your BTL so you can make the most of your investment. Let’s start by understanding the importance of cash flow for BTL.