Should I remove tax deductibles (property tax, insurance etc) For cash flow?

[Jorge Martínez]

I am looking at my first rental property investment, with the current rates and San Diego pricing cashflow is very hard, so I wonder if I should remove tax property and insurance from my cashflow calculations as they are 100% deductible at some point. This will get me in a better position

Thanks

Jorge

[Bill B.]

“Cash flow” is “cash” going in and out of your pocket. If you have to pay property tax and insurance they are expenses. You could make your exact same argument for eliminating the bank payment from your cash flow statement. It’s only “100 deductible interest” and loan pay down. 

Ps. Just so you know. “100% deductible” doesn’t mean you get 100% of yoru money back. It means you paid 50-80% of the expense, and then you received 20-40% back in reduced taxes.