Cash flow calculation

3 Replies

Hi to all, My question is after put down your percentage for loan and put in the all the factors to get cash flow, wouldn’t the funds spend on repair added to your down payment to calculate cash flow?

I'm not sure I follow your question but I think what your asking is do the initial repairs get figured into your down payment on the property when calculating overall cash flow of the property.  What it will take to get the property into functional condition, example: rent ready, at the front end of the acquisition can be used to figure out what your cash on cash return and return on investment will be.  In most cases there will also be repairs needed throughout the year.  That will be a separate percentage than will ebb and flow.  Some months you won't spend it and some months you will spend double what you figured.  This will impact your monthly cash flow.

Of course at the end of the year you add it all up to determine your ROI and COC return.

Hopefully that answers your question.