Open House – Rants & Raves

[surveyor]

In my computations, cash flow is as follows:

CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.

Tax Savings is as follows:

TX = (Depreciation allowance – Cash Flow – Loan Reduction)*Tax Rate

[Jumby]

“CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.”

Why would you subtract mortgage interest to figure cash flow?

Wouldn’t it be gross rents – total debt service – operating expenses?

[Jumby]

“CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.”

Why would you subtract mortgage interest to figure cash flow?

Wouldn’t it be gross rents – total debt service – operating expenses?

[Jumby]

“CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.”

Why would you subtract mortgage interest to figure cash flow?

Wouldn’t it be gross rents – total debt service – operating expenses?

[Jumby]

“CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.”

Why would you subtract mortgage interest to figure cash flow?

Wouldn’t it be gross rents – total debt service – operating expenses?

[Jumby]

“CF = gross rents – mortgage interest – maintenance – property management fee – other expenses.”

Why would you subtract mortgage interest to figure cash flow?

Wouldn’t it be gross rents – total debt service – operating expenses?

[surveyor]

Haha mice…

Yup, sorry, it is “debt service” or “mortgage payment” not mortgage interest…

[surveyor]

Haha mice…

Yup, sorry, it is “debt service” or “mortgage payment” not mortgage interest…

[surveyor]

Haha mice…

Yup, sorry, it is “debt service” or “mortgage payment” not mortgage interest…

[surveyor]

Haha mice…

Yup, sorry, it is “debt service” or “mortgage payment” not mortgage interest…

[surveyor]

Haha mice…

Yup, sorry, it is “debt service” or “mortgage payment” not mortgage interest…

[Jumby]

Technically speaking ROE = Cash Flow After Taxes / Initial Cash Investment.

Your CF was calculated WITHOUT factoring in depreciation (you saved that for later in the computation). That is why I assumed you didn’t take the mortgage interest into account.

Would it not make more sense to leave your CF as gross and then factor in all the deductions into the Tax Savings part later on in the computation?

Probably doesn’t matter…just saying…anyway, nice pickup.

[Jumby]

Technically speaking ROE = Cash Flow After Taxes / Initial Cash Investment.

Your CF was calculated WITHOUT factoring in depreciation (you saved that for later in the computation). That is why I assumed you didn’t take the mortgage interest into account.

Would it not make more sense to leave your CF as gross and then factor in all the deductions into the Tax Savings part later on in the computation?

Probably doesn’t matter…just saying…anyway, nice pickup.

[Jumby]

Technically speaking ROE = Cash Flow After Taxes / Initial Cash Investment.

Your CF was calculated WITHOUT factoring in depreciation (you saved that for later in the computation). That is why I assumed you didn’t take the mortgage interest into account.

Would it not make more sense to leave your CF as gross and then factor in all the deductions into the Tax Savings part later on in the computation?

Probably doesn’t matter…just saying…anyway, nice pickup.

[Jumby]

Technically speaking ROE = Cash Flow After Taxes / Initial Cash Investment.

Your CF was calculated WITHOUT factoring in depreciation (you saved that for later in the computation). That is why I assumed you didn’t take the mortgage interest into account.

Would it not make more sense to leave your CF as gross and then factor in all the deductions into the Tax Savings part later on in the computation?

Probably doesn’t matter…just saying…anyway, nice pickup.

[Author]

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