Cash Flow After Tax - should analysis consider income tax ?

[Dan Desler]

Hi Everybody 

My question is when analyzing a property should I consider income tax in my analysis or should I assume that the deductions will reduce my taxable income to where its pretty much evens out and not worry about it? 

I ask because most things I read don't go into that deep into after tax cash flow and I'm interested because to me what is left after you've paid tax is really what I've earned and can be used for investments, paying investors etc. 

Let me give an example:

Looking at a property with 

NOI - $14,230

Mortgage - $5,012

Capex & maintenance fund - $1943

Cash Flow Before Tax - $7275

Now if I take the taxable income (NOI minus interest on the loan and depreciation over 27.5 years) I now have a CF After tax of $5,387. There should be other deductions that reduce my taxable income but at a minimum I can work these out and have an idea that at a very least I will have $5,387,

I guess my question is, would it be worth figuring out taxable income and CFAT when doing initial analysis on properties or is it safe to just stick with CFBT? Am I making it too complicated?

Thanks!

Dan