Ask the Advisor – How can I develop an accurate cash flow projection?
Abstract: Realistic cash flow projections are crucial to wise investment decisions and intelligent property management. Savvy real estate investors run cash flow projections on every property they intend to buy, to help determine the before-tax viability of an investment. This article discusses how, with a little research and some simple calculations, you can develop a cash flow projection on your next purchase. A helpful sidebar shows how to calculate cash flow before taxes.