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Understanding Cashflow of a Investment Property

By Joseph V. Scorese

Mortgage and Lending with Firstrust Bank 391784

August 01, 2008 02:09 AM

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.

PM

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