Updated almost 6 years ago on . Most recent reply
Are my cash flow calculations accurate?
Hi all,
Im trying to see how much cash flow I would have if I'd finance 100% of the property. In other words, the 20% required for the down payment of the property comes from a conventional loan. Thing is, I've never done this before so I dont know if these are correct calculations. Im basing all of this from the loopnet numbers (link)
$700k, 7 unit, Chicago IL.
30 year 560k mortgage, 4% int.
10 year 140k conventional loan, 4% int.
Real Estate Taxes: 6571
Insurance: 4007
Gas: 863
Water/Sewer: 3287
Electric: 846
Scavenger: 1855
Janitor: 630
Maintenance & Repairs: 3224
6% Vacancy Loss: 5673
Yearly/Monthly Rent Income: 94560/7880
Yearly/Monthly Expenses: 26956/2246
Yearly/Monthly NOI: 67604/5633
Monthly Payments
Mortgage (only P&I since RE tax & insurance are already covered at the top)(*): 2674
Conventional Loan: 1417
Monthly Cash Flow = NOI - (Mortgage + Conventional Loan) = 1542.
Im not sure if my numbers are accurate... Am I missing something? Im probably miscalculating where I placed the (*). There are two real estate taxes: the one that appears in loopnet and the one that its on the zillow mortgage calculator. If I take into account the two it leaves 1008 cash flow... What do you think?