Cash Flow Analysis & Modeling

8 Replies

Hello BiggerPockets Community,

First time poster here. My wife and I are in the process of acquiring our first rental property with the intention of using the 'Buy and Hold' strategy. My background is in financial analysis, so I put together a cash flow model to project long-term cash flow/profitability/net worth. I'd love to share the cash flow model with anyone, especially anyone in the Omaha area, to get their thoughts and to connect with other local investors. I'd share it on the site, but I'm not sure that's possible so drop me a line if you're interested and I'll email it to you. Thanks!

Drew

Thanks, Jim!  I added it to the File Place and titled the file 'Cash Flow Model & Analysis.'  It's a work in progress, but demonstrates the ability to build wealth over time.  Appreciate any feedback.

@Account Closed A lower down payment will increase cash flow in year 0, but cash flow will be slightly lower in the out years due to the higher mortgage payment. A lower down payment will increase ROI and CoC because the money is relatively cheap to borrow, i.e., assuming you can charge rent at a profitable level, the return on the investment is greater than current interest rates. If the property generates a return greater than the interest rate, leverage is a benefit.

@Account Closed I'll admit - the scenario above is definitely out of my wheelhouse, but sounds like a fantastic deal.  Congratulations!  My cash flow model was based on conventional financing.  I'd recommend speaking to a CPA.