Experience You Can Trust

Buying an Investment Property (Cash Flow Calculation)

The Cash Flow Model

Potential Rental Income

less

Vacancy

equals

Effective Rental Income

plus

Other Income

equals

Gross Operating Income

less

Operating Expenses

equals

Net Operating Income (NOI)

less

Annual Debt Service (ADS)

equals

CASH FLOW BEFORE TAX
(CFBT)

The housing market has stabilized in Orange County. Interest rates are great and there is more selection. Yes the foreclosures are gone but there is NO bubble because everyone who has purchased in the last six years has been all cash or VERY well qualified as a buyer.

There is not enough housing to meet the growing population and many “want to be” buyers are unable to buy and must rent. Good definition of a market that favors landlords.

Call Ron Buck at 949-456-0505

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