Hello
I`ve been through all the threads I could find on Cash Flow, but did not find an answer to the following...
When discussing Positive Cash Flow, do investors consider the LOC payments as part of their calculations or does everyone calculate Cash Flow based on:
- 25% Down Payment (any interest on money for Down Payment not considered)
- 25 year ammortization
With the option of putting as little as 10% Down Payment and stretching a mortgage over 40 years, a negative Cash Flow can easily become positive, but the return (equity accumulated) will be a lot less.
1. Is LOC payments considered as part of Cash Flow
2. Do investors use the above standard to calculate Cash Flow or simply work the numbers (amortization period, down payment amount)
Thank You
I`ve been through all the threads I could find on Cash Flow, but did not find an answer to the following...
When discussing Positive Cash Flow, do investors consider the LOC payments as part of their calculations or does everyone calculate Cash Flow based on:
- 25% Down Payment (any interest on money for Down Payment not considered)
- 25 year ammortization
With the option of putting as little as 10% Down Payment and stretching a mortgage over 40 years, a negative Cash Flow can easily become positive, but the return (equity accumulated) will be a lot less.
1. Is LOC payments considered as part of Cash Flow
2. Do investors use the above standard to calculate Cash Flow or simply work the numbers (amortization period, down payment amount)
Thank You