Concern about Bigger Pockets calculator.

[Joel Barjon]

Question: how do they calculate cashflow? I believe cashflow is the NOI minus mortgage. Please tell me if I am wrong. I was trying to make an offer on a duplex just to see how much cashflow it will generate. The cashflow was over $600, and the cash on cash return was 34%, which got me excited. However, when I went over the analysis, I found out the cash flow the calculator gave me was the NOI. Listen, I may be wrong, but I would like to get an answer. How much cashflow, will I get each month?

Price 179,00

Down payment: 10%

Interest: Principal only

Gross monthly income: $1,500

Loan terms: 30 years

Closing cost: $4,000

Property tax: $90/month

Homeowner insurance: $70/month

Vacancy: 5%

Repair maintenance: 5%

Management fee: 5%

Capital expenditures: 5%

[Aaron Breckenridge]

Moved to the BP Q&A forum