Monday, March 19, 2012

How do I calculate a apartment building ... - Finance information

Question by boss : How do I calculate a apartment building investment cash flow Before taxes After taxes gold
I am going to invest in a apartment building using a loan.Is it the noi-annual debt service payments-annual mortgage-loan Paybacks The Annual-Income Taxes?If This Is not right, then please provide statement Determining the proper way of my actual Annual profit after tax or pre-tax. Best answer:
Answer by

fn0384
You Need to calculate the after-tax revenu rental first, then second After tax cash flow.First after-tax revenu from the property.Incomea) gross income from the rentalsExpensesb) mortgage interestc) depreciation (assumes 80% of the purchase price is depreciable building, Malthus Annual depreciation is purchase price x 80% / 27.5 years or about 2.9% of the purchase price)d) real estate taxese) rent loss due to vacancy, takingf) management feeg) Maintenance feeh) insuranceIncome ? Expense Would Give You roughtly taxable rental revenu from the property.Assuming the rental bldg Generates a (paper) loss, You Can Apply it your personal Towards ordinary revenu and use it to Reduce Your ordinary income options.If you show a rental profit, then You Would Have to pay at your marginal tax rate.Cash Flow:Annual Rental Income ? annual mortgage payment ? / + tax liability or tax Benefit From owning this property.


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Source: http://www.lovefinanceinfo.com/2012/03/how-do-i-calculate-a-apartment-building-investment-cash-flow-before-taxes-after-taxes-gold/?utm_source=rss&utm_medium=rss&utm_campaign=how-do-i-calculate-a-apartment-building-investment-cash-flow-before-taxes-after-taxes-gold

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