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Understanding Cashflow of a Investment Property

Cashflow Worksheet

Unit Address:

ARV:                                                                                    MDS:

Refi (75%-80%):                                                            Taxes:

Rent:                                                                                   Insurance:

Expenses:                                                                          PM:

Cashflow:                                                                           Expenses:

Cashflow Formula: Rent - Expenses = Cashflow

Terms:

ARV
- After Repair Value. This number is derived from Comps, CMA's,

and other appraisal tools.

Refi

- This the amount you will be refinancing to get your money back from

the property after it has been rehabbed.

Rent

- The highest amount you can get monthly from the property.
Expenses
- The total amount of necessary payments for the property.
Cashflow
- The amount of money you pocket after all expenses are paid

from the rent.

MDS

- Monthly Debt Service. The monthly payment on your refinanced

loan.

Taxes

- The amount of Real Estate Taxes set aside monthly for your

annual payment.

Insurance

- The amount of Property Insurance set aside monthly for your

annual payment.

- Property Management. A monthly portion of the rent paid to the

manager of your property. (Generally Between 6%-10%)

Posted by Joseph Scorese on 08/01/2008 09:09 AM

Comments (1)

This post has been included in Pennsylvania Information
Post is included in group: Realtors®
Post is included in group: Real Estate Rookie
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Post is included in group: FIX AND FLIP IT
Post is included in group: Philadelphia Investment Real Estate

1 Comments on Understanding Cashflow of a Investment Property

AUG

2008

Great explination post...as usual! May I ask where you get all your data? You've got the best sites referenced!

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