Worksheet 1.8
When the House Sits Empty
Attempts2 attempts left
A house rents for $2,000 a month. The taxes, insurance and repairs come to $1,500 a month. Run the rule. Then the tenant moves out and the house sits empty for a month. What happens to the answer, and what doesn’t change at all?
Answer & explanation
Monthly cash flow = rent − expenses
- Full month: $2,000 − $1,500 = $500
- Empty month: $0 − $1,500 = −$1,500. The owner doesn’t just make nothing, they lose $1,500.
- What doesn’t change: the expenses, $1,500.