Cashflow on Rental

You are missing property tax and an estimate for maintenance but it's pretty clear from what you have provided that the rent is covering way more than 1/3 the expenses. Also for mortgage you would only include the portion that is interest not the full payment.

Yes you are cashflow positive from a very basic calc if you take 1/3rd of those expenses on a monthly basis, your rent pays them with $250/month positive cashflow.

Your maintenance on a home is grossly understated FYI.

There are a couple ways to look at this.
On an annual basis you have $12,000 more in cash than you would have, if you weren't renting out the basement. (But not just quite)

Taking 1/3rd of all your home expenses, won't be accurate to the calculation as if you weren't renting out your basement you would still have certain expenses.

The expenses we can't take into consideration is the Property Tax, Mortgage Interest, internet and home insurance. - Fixed costs that aren't tiered to whether the basement was rented or not.

The remaining expenses of Electricity, Gas, Water are variable expenses, are completely tiered to the basement being rented. And we can take a 1/3rd of the expenses for our calculation.
($300 + $150 + $110 = $560) x .33
=$184.80

Yeah, believe or not you are actually cash flowing $815.20/Monthly ($9,782.4 annually)

This is how I would calculate it, the CRA might calculate it completely different though....

The real question is, what would you prefer? An extra $9,782 each year or your basement to roam around in! Best of luck!

Agree with the above. Its almost ALL positive cashflow as only the variable expenses should be considered. The only other expense would be income taxes.

"If its worth it?" would matter more on whether you would like an empty basement more than having a renter and ~$10,000 in your pocket.

Try using this calculator.

https://www.calculator.net/rental-prope ... lator.html

There is a difference between net income and cash flow positive

Net income = Income less expenses less income taxes
Cash flow = Income less expenses less income taxes less principal portion of mortgage as well