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Cash Flow Analysis

 

 

 

The Cash Flow Analysis is used to show you the cash flow generated for this particular year. The calculation is quite simple.  From the total Income generated by the property, all the cash out-of-pocket expenses are subtracted.  The result is the Before Tax Cash Flow (that is, the cash flow before any income taxes are considered).

Income.  The Monthly Income multiplied by 12.  It is then adjusted for inflation using the Inflation and Discount Rate.
DP and UFM.  The Down Payment and Up Front Money.  You will only see an entry for DP and UFM when displaying the data for Year 1.
Vacancy. The income computed above multiplied by the Vacancy Rate.
Principal Payments. The total amount of the mortgage payment(s) applied toward the principal balance this particular year.
Interest Payments. The total amount of the mortgage payment(s) applied toward interest this particular year.
Taxes. The Annual Taxes due.  It is adjusted for inflation using the Inflation and Discount Rate.
Insurance. The Annual Insurance amount due.  It is adjusted for inflation using the Inflation and Discount Rate.
PMI. The annual PMI amount due.
Expenses. The Annual Expenses amount.  It is adjusted for inflation using the Inflation and Discount Rate.
1st Mortgage Balloon. The balloon payment, if any, applied towards the first mortgage.
2nd Mortgage Balloon. The balloon payment, if any, applied towards the second mortgage.
3rd Mortgage Balloon. The balloon payment, if any, applied towards the third mortgage.
Before Tax Cash Flow. The Income minus all of these cash expenses.

 

When analyzing the cash flow data, it is helpful to see the monthly amounts for the Income and payments (PMI + PITI). To do so, right-click on the Cash Flow Analysis section of this Tab (not on the Cash Flow Analysis table itself, but on the area surrounding it). A pop-up screen will appear similar to the example shown below:

 

 

 

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Last modified: May 03, 2001
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