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Insider Secrets to Financing Your Real Estate Investments
Paperback: 261 pages
Pub: McGraw-Hill
ISBN: 0071422579
Available at:Amazon
Cash Flow
                    INCOME
                    Gross Scheduled Rent Income
                    Other Income
                    TOTAL GROSS INCOME
                    VACANCY & CREDIT ALLOWANCE
                    GROSS OPERATING INCOME
                    EXPENSES
                    Insurance (fire and liability)
                    Property Taxes
                    Repairs and Maintenance
                    Supplies & Miscellaneous
                    Utilities
                    Other
                    TOTAL EXPENSES
                    NET OPERATING INCOME
                    Less Annual Debt Service, First Mortgage
                    Less Annual Debt Service, Second Mortgage
                    Less Capital Additions
                    Plus Loan Proceeds
                    Plus Interest Earned
                    CASH FLOW BEFORE TAXES
                    Less Income Tax Liability
                    CASH FLOW AFTER TAXES
Automatic Recalculation
Cash Flow Before Taxes (CFBT)

During a given period, all of a property's cash inflows less all of its cash outflows. Inflows are counted whether or not they must be included as taxable income and outflows are counted regardless of deductibility. Cash flow is not affected by depreciation, which is not a cash item.

Cash Flow After Taxes (CFAT)

CFAT equals the cash flow before taxes, reduced by the tax liability that the property generates for the owner, or increased by the tax savings.