Cash Flow

Cash Flow

The total net amount you will receive from a rental vehicle as income.

Cash flow accounts for all sources of income and all expenses, including loan payments if you are using financing.

 

How Is It Calculated?

With Financing:
Cash Flow = NOI - Loan Payment
 
Without Financing:
Cash Flow = NOI
    • Related Articles

    • Post-Tax Cash Flow

      The total net cash flow you will receive from a rental vehicle after subtracting the estimated income tax. How Is It Calculated? Post-Tax Cash Flow = Cash Flow * (1 - Income Tax Rate)
    • Cash on Cash Return (COC)

      A rate of return of a rental vehicle based on comparing the yearly cash flow to the total invested cash. The cash on cash return represents the yearly return you will receive on your invested capital. How Is It Calculated? COC = Yearly Cash Flow / ...
    • Total Cash Needed

      The total amount of cash you will need to purchase and rehab a property. How Is It Calculated? With Financing: Total Cash Needed = Loan Down Payment + Purchase Costs + Rehab Costs Without Financing: Total Cash Needed = Purchase Price + Purchase Costs ...
    • Return on Investment (ROI)

      A rate of return of a transaction based on comparing the total profit from your investment to the total invested cash. For a rental vehicle, the ROI takes into account the cumulative cash flow, equity accumulation and loan paydown and gives the total ...
    • Internal Rate of Return (IRR)

      An average annualized rate of return of your total invested cash, sometimes also called annualized return on investment (ROI). For a rental vehicle, the IRR takes into account the cumulative cash flow, equity accumulation and loan paydown and gives ...