If you are considering the acquisition of an apartment building (small or big) you will definitely need to calculate its Before-tax cash flow (BTCF). You can find the formulas for the BTCF calculation along with an example in the post Property Investment Basics: Before-Tax Cash Flow.
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For the convenience of our readers, we have put those formulas into a spreadsheet that you can use for a quick and easy calculation of this important property investment performance metric. Beware that your BTCF calculation will be as accurate as the numbers you input in this spreadsheet for the various revenue and expense items pertaining to the property. The spreadsheet will calculate automatically the BTCF if you enter the Number of Units, Average Monthly Rent/Unit, Other Income (Annual), Recoveries, Vacancy and Collection Losses (%) and Operating Expenses.
It will also calculate automatically the annual debt service that needs to be taken into account when calculating the BTCF by entering in another sheet in the spreadsheet the interest rate, amount and duration of the loan, which needs to be a fixed-rate loan. If it is not a fixed-rate loan or there are more than one loans burdening the property, then you need to type your own calculation of the annual debt service for all loans burdening the property under consideration.
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Disclaimer for BTCF Calculation Spreadsheet
By downloading the spreadsheet through the link below you agree that in no event shall www.property-investment.net be liable for any damages (whether direct, indirect, punitive, incidental, special, consequential or otherwise) arising out of, or in any way connected with, the use or inability to use this spreadsheet. In no event shall www.property-investment.net total liability to you for damages, losses, and causes of action exceed the amount paid by you, if any, for accessing this spreadsheet.
Click here to download the free BTCF calculation spreadsheet
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