Compute the cash flow, tax flow, and after cash flow for the following real estate investment property.
Expected Gross Rents are $56,600 per year.
Expected Total Vacancy allowance is 10%
Expected Total Operating Expenses per year: $8,000
Payment of martgage per year:
Interest $12,000
Principal 6,000
Total $18,000
Depreciation for the year is $18,350.
The owner's income tax bracket is 25%
A) Cash Flow ...................................
B) Compute Tax Flow (Taxable Income or Less on this property).......................
C) Is the taxable Income Positive or Negative?.................
D) Does the investor have a tax savings or taxable income on this property?..........................
E) Compute the after tax cash flow........................