All Forum Posts by: Kaitie Carson

Should cash flow on a property be calculated after subtracting tax?

Tax is high in Canada ~45%, so this makes a big difference.

Thanks,

Kaitie

I'm in the same situation. Trying to decide between a:
1) cheap, no appreciation property that meets the 2% rule - $350 cash flow
2) expensive, high appreciation property that is only 0.5% rule - $350 cash flow, and will deplete my savings.

For me, I made the decision to go for the cheaper place to get the higher Cash-on-Cash ROI (CoCROI), especially if your just starting out and need the cash to purchase more properties.

Starting to analyze more rental properties in my (very expensive) town. I've been looking at this property. Am I missing any obvious expenses? Is cash flow calculated after tax?

And lastly, is this a terrible deal?

https://1drv.ms/x/s!Audoh_k4GKf-hSQ6du7Na-GaCADF?e=9hoEJD

I'm new to Bigger Pockets. Looking to connect with investors in the East Kootenays, BC (Fernie, Sparwood, Elkford, Cranbrook area). I found a few good opportunities in the Elk Valley that I'd be interested in discussing/sharing/collaborating on.

Investment Info:

Condo buy & hold investment in Kelowna.

Purchase price: $215,000
Cash invested: $50,000

Two bedroom rental in condo outside of Kelowna in Lake Country, BC