I think it is time for a new acronym...
After spending time on the forums I have realized that there are large gaps in communication when it comes to calculations for cash flow or net income on buy and hold investments. From my perspective the issue is because they're large variances on how people calculate cash flow and subsequently, how we talk about cash flow. We have come to know PITI. (If you hover over that acronym you can find out what that means) People sometimes take their gross rental income and subtract PITI in order to get their cash flow. Many others include more expenses...
How about VMCP? (Vacancy, Maintenance, Capital Expenditures, and Property Management) With this new acronym we could quickly clarify cash flow discussions. For example: "Did you include VMCP?" or "I noticed your VMCP is $600/mo, do you think that will be adequate for that 24 unit?"
What do you think? Do we have space for another acronym? Can we get consensus and throw an underline under VMCP?
@Nathan Hui I don’t hate it
@Nathan Hui I find acronyms make it harder for people to follow, especially new people. I can see for those typing on a cell phone how it would be quicker, but that's about it.
@Nathan Hui I kinda like it
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