How to Analyze Rental Property Cash Flow Like a Pro in Alberta

By Wayne Hillier, Real Estate Investing Masters

June 3, 2025 | Edmonton, Alberta

Understanding how to analyze rental property cash flow is one of the most important skills an investor can develop, especially in volatile markets like Alberta. Whether you're buying your first rental or scaling your portfolio, cash flow tells you whether the deal will keep you afloat or sink your ship.

Here's how to break it down, step by step.

1. Start With Gross Rent

Look up current market rents for your target area using tools like Rentfaster or comparable listings. Be conservative. Do not use best-case scenarios.

2. Subtract Fixed Expenses

Include:

• Mortgage payments

• Property taxes

• Insurance

• Condo fees (if applicable)

• Utilities (if landlord-paid)

This gives you a basic monthly cash flow snapshot.

3. Don’t Forget the Hidden Costs

Set aside:

• 8% for vacancy

• 2-4% for maintenance

• Property management (even if self-managed for now)

You do not want to be surprised when the furnace dies or a tenant leaves mid-lease.

4. Use the 5% Rule™ – The Cash Flow Test

I developed the 5% Rule™ to help real estate investors assess whether a rental property is truly sustainable. It is a simple but powerful way to evaluate your deal before you buy.

Want to learn how to calculate it and what your results really mean?

👉 Order the book on Amazon to get the full breakdown and apply the 5% Rule™ to your portfolio today.

5. Run Scenarios Before You Buy

Ask yourself:

• What happens if interest rates go up 2 percent?

• What if rent drops $200 per month?

• Could I carry the property for 3 months without rent?

Stress testing your numbers is the difference between gambling and investing.

6. Alberta-Specific Insight: Be Conservative on Rent

While Alberta is landlord-friendly and has great tenant profiles, vacancy rates and rent growth can vary by region. Stick to mid-market rents, not premium pricing.

Listen to the Real Estate Investing Morning Show

– Hosted by Wayne and Gabby Hillier

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Wayne Hillier - Alberta Real Estate Investing Expert

About the Author

Wayne Hillier is one of Canada’s trusted experts in real estate investing education, specializing in Alberta’s thriving markets. Based in Edmonton, Wayne has over a decade of experience building a high-performing rental portfolio and coaching investors to achieve strong cash flow, sustainable wealth, and creative financing success. As co-founder of Real Estate Investing Masters, Wayne is a respected real estate investing coach and mentor, dedicated to helping Canadian investors confidently scale their portfolios. He is also the host of the Real Estate Investing Morning Show, where he shares daily strategies and insights for mastering real estate investing in Canada.