Trace Rental Collections Through the Investor’s Cash Budget

For a business-purpose, non-owner-occupied 1–4-unit rental property, follow actual collections through operating expenses, loan payments and reserves. Keep refundable tenant deposits and one-time funding separate, avoid counting escrow expenses twice, and distinguish owner-planned reserves from lender requirements. Don McClain explains why a full ownership budget should include vacancy, repairs and larger replacements alongside financing calculations. Financing is subject to underwriting, property eligibility and approval. General educational commentary.

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