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What is the best way to properly analyze potential cash flow properties? Been searching online for a good free cash flow calculator but it takes me mostly to paid downloads.
Am trying to analyze some properties and get accurate numbers.
Thanks in advance,
g yanez
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Hi G,
I don't have any equations. I'm looking at a couple of single fams in Metairie, LA and the math is pretty straight forward. Start with your mortgage calculation, and add in insurance and taxes. Save that number. Pull some comps in the area, look at what realistic rents are, subtract 10% from that number for management, and subtract your costs from the rent minus management. Ideally you have a positive number there. Make sure it has a bit of cushion to account for agent fees (to find your tenant), and periods where the apartment doesn't rent.
This is only theory, but that's how a basic formula would work.
Hope it helps.
R/
Chad.
--
It's possible.
Writing on http://thisbluecouch.com
G,
this will give you an averaage cash flow figure: start with the rental income the property would generate; deduct operating expenses (taxes, insurance, repairs, management); deduct mortgage payment (if any). You can add tax savings if you want to be more accurate.
Wishing you success,
Valerie
Valerie
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I don't know if this is what you mean by cash flow calculator, but here is a link for an HP 12c financial calculator.
http://download.cnet.com/hp-12c-Financial-Calculator/3000-2066_4-1025347...
I prefer the HP10BII...you can pick one up at Walmart for about $30, even cheaper online.
that should solve your proplems:
http://www.biggerpockets.com/tools/REIPropertyAnalyzer.xls
I looked at and it appears to be adequate for most situations.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thanks for all responders. Much helpful.
Happy Fourth !!!