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Updated about 5 years ago,

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3
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Josh Sanders
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3
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Are my cash flow calculations accurate?

Josh Sanders
Posted

Hi all, 

Im trying to see how much cash flow I would have if I'd finance 100% of the property. In other words, the 20% required for the down payment of the property comes from a conventional loan. Thing is, I've never done this before so I dont know if these are correct calculations. Im basing all of this from the loopnet numbers (link)

$700k, 7 unit, Chicago IL.

30 year 560k mortgage, 4% int.

10 year 140k conventional loan, 4% int.

Real Estate Taxes: 6571

Insurance: 4007

Gas: 863

Water/Sewer: 3287

Electric: 846

Scavenger: 1855

Janitor: 630

Maintenance & Repairs: 3224

6% Vacancy Loss: 5673

Yearly/Monthly Rent Income: 94560/7880

Yearly/Monthly Expenses: 26956/2246

Yearly/Monthly NOI: 67604/5633

Monthly Payments

Mortgage (only P&I since RE tax & insurance are already covered at the top)(*): 2674

Conventional Loan: 1417

Monthly Cash Flow = NOI - (Mortgage + Conventional Loan) = 1542.

Im not sure if my numbers are accurate... Am I missing something? Im probably miscalculating where I placed the (*). There are two real estate taxes: the one that appears in loopnet and the one that its on the zillow mortgage calculator. If I take into account the two it leaves 1008 cash flow... What do you think?

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