Hello - hopefully I didn't miss a thread on this already. Can you help me understand what I'm missing in my calc? I'm trying to build an excel model to calculate cash flow before taxes.
Thank you!!
Monthly:
Gross Rental Income (will assume to remove the 1 month fee for leasing it to new tenant)
- ~5% vacancy reserve (or just keep $ in reserve beforehand)
- ~10% management fee/or flat fee depending on which way I go
- Property Tax
- Property Insurance
- Maint./repairs reserve (what %/amt?)
- Flood insur.
Net Operating Income
- Capital Expense reserves %/amt?
Cash Flow from operations
- Financing Costs (mortgage)
= Cash Flow after financing
Other things TBD to get to taxable income, then cash flow after taxes:
-Deduct Interest Expense
-Deduct Depreciation expense
=Taxable income
-taxes
=Cash Flow after taxes
Thank you!!
Monthly:
Gross Rental Income (will assume to remove the 1 month fee for leasing it to new tenant)
- ~5% vacancy reserve (or just keep $ in reserve beforehand)
- ~10% management fee/or flat fee depending on which way I go
- Property Tax
- Property Insurance
- Maint./repairs reserve (what %/amt?)
- Flood insur.
Net Operating Income
- Capital Expense reserves %/amt?
Cash Flow from operations
- Financing Costs (mortgage)
= Cash Flow after financing
Other things TBD to get to taxable income, then cash flow after taxes:
-Deduct Interest Expense
-Deduct Depreciation expense
=Taxable income
-taxes
=Cash Flow after taxes