How to project Cash Flow

tucker713 · August 31, 2006, 12:24pm

Ok, I’m a noobie and now for the Noob question of the week;

How do I project cash flow? What is the actually mathmatical equation?

I have read some books and look on the internet, but I want to here what people here have to say.

Thanks

aak5454 · August 31, 2006, 4:09pm

if you are talking about rentals, I would encourage you to do some reading over in the Rentals threads. This topic is discussed, argured and thrashed about on a nearly a daily basis from real-world experiences

tucker713 · August 31, 2006, 7:10pm

Ok - I looked all over this front page of the forum section but can’t seem to find the rental section, can you point me in the right direction.

thanks

propertymanager · August 31, 2006, 7:19pm

Tucker,

Here’s how to find the projected cash flow:

Take 1/2 of the gross rents and subtract your mortgage payment (principal and interest).

It’s just that simple.

Mike

tucker713 · September 1, 2006, 12:09pm

Great thanks - so I’m assuming the other half goes towards Operational Expenses…?

propertymanager · September 1, 2006, 2:22pm

Yes, the other half is operating expenses.

Mike