Charts

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more

Price Resiliency™

Average Price Resiliency™ Percent

Price Resiliency™ is the amount property values (price) can decline before you’re underwater, upside down or have negative equity on rental properties. Similar to Rent Resiliency™, we can measure Price Resiliency™ in terms of dollars or in terms of percent. In other words, we can ask: How many dollars can property values (price) decline before I’d have negative equity? Or, what percent can property values (price) decline before I’d have negative equity? When we talk about Price Resiliency™ in dollars, what we’re really talking about is Equity. That’s because Equity is the amount of dollars that property values can decline … Read more

Equity

Total Equity - Inflation Adjusted

Equity is the difference between what a property is worth and what is owed. If you take into account the cost to sell a property when calculating Equity, we refer to that as True Net Equity™. You can view charts of Equity for individual  Properties in the Real Estate Financial Planner™ software or the total Equity for all  Properties in the entire  Scenario.

Rent Resiliency™

Average Rent Resiliency™ Percent

Rent Resiliency™ is the amount rent can decline before you have negative cash flow on rental properties. We can measure it in terms of dollars or in terms of percent. In other words, we can ask: How many dollars can rent decline before I’d have negative cash flow? Or, what percent can rent decline before I’d have negative cash flow? When we talk about Rent Resiliency™ in dollars, what we’re really talking about is Cash Flow. That’s because Cash Flow is the amount of dollars that rent can decline before you’d have negative cash flow. But, the idea of Rent … Read more

True Cash Flow™

Ep 5 - Andrea - Total True Cash Flow - Monte Carlo

You’ve heard of cash flow on rental properties. Basically, it is defined by taking all the income from your rentals minus all your expenses. Cash Flow = Income – Expenses But, have you heard about True Cash Flow™? True Cash Flow™ is your traditional cash flow plus Cash Flow from Depreciation™. True Cash Flow™ = Cash Flow + Cash Flow from Depreciation™ If you’re familiar with the Return Quadrants™, True Cash Flow™ is represented by the returns from these two sections: Post Depreciation Period Depreciation for a residential rental property typically lasts 27.5 years. Since True Cash Flow™ is really … Read more

Cash Flow from Depreciation™

Ep 1 - Andrea - Total ROE from Cash Flow from Depreciation™

Cash Flow from Depreciation™ is your gross depreciation for a property times your estimated tax rate. It gives you approximately how much money you expect to receive from a rental property in tax benefits. Because it is a variation of cash flow, we tend to think of it in terms of a monthly amount. Although, for the Return Quadrants™ we will present it as a yearly amount. For the Return Quadrants™, we show it in this section: Over Time Gross depreciation is established when you buy the property. For residential properties, it remains the same for 27.5 years. And, unless … Read more

Rent Appreciation Rate

Rent Appreciation Rate is the rate the  Property’s rent is going up or down. It is for rent what Appreciation Rate is for home prices. Historical Rent Appreciation Rates The following is a summary of the historic Rent Appreciation Rate have been for the top 552 real estate markets in the United States based on the change in median rent from census data between 2010 and 2018. When modeling your investments using the Real Estate Financial Planner™ software, you could use the historical Rent Appreciation Rate but the past does not always mean the same will happen in the future. … Read more

Property Charts

The Real Estate Financial Planner™ software allows you to drill down and see  Charts of a variety of different measurements and views into each  Property that you’re modeling. If you want to see how the entire  Scenario is performing you can look at   Scenario Charts instead. The   Account Charts are similar to the   Account Charts except you’re able to drill down into any  Account instead of any  Property.

Account Charts

The Real Estate Financial Planner™ software allows you to drill down and see  Charts of a variety of different measurements and views into each  Account that you’re modeling. If you want to see how the entire  Scenario is performing you can look at   Scenario Charts instead. The   Property Charts are similar to these   Account Charts except you’re able to drill down into any  Property instead of any  Account.

Scenario Charts

The Real Estate Financial Planner™ software allows you to view  Charts of a variety of different measurements and views into your entire investing strategy. The   Scenario Charts show you how the entire  Scenario is performing. Each   Scenario Chart summarizes all your  Accounts and all your  Properties. If you want to see how a specific  Account check out the   Account Charts. Similarly, if you want to see how a specific  Property is performing you can check out the   Property Charts.