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

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

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

Appreciation Rate

Appreciation Rate is the rate the  Property is going up or down in value. Historical Appreciation Rates We will cover how the Real Estate Financial Planner™ software calculates and uses Appreciation Rate here. However, before we get there, let’s look at what some historical appreciation rates have been for a sampling of the 552 largest cities in the US have been according to the US census data between 2010 and 2018. I’ve shown summaries of historical appreciation rates (grouped by states) below. You could use the historical Appreciation Rate for each city when analyzing properties using the The World’s Greatest … Read more