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Craigville Realty Co has used this "CASH FLOW ANALYSIS" as a tool for over thirty years. Simply enter the price of the house where indicated. These calculations are based on a 20% down payment. Lower mortgage payments are available through less stable, variable, interest only programs; however, years of experience has made it clear to us that we need to make these figures conservative in order to be safe. Even so, PLEASE UNDERSTAND THAT EACH INDIVIDUAL PROPERTY IS UNIQUE AND PRECISE CALCULATIONS MAY NEED TO BE REVISED ACCORDINGLY.
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The key summaries are:
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TOTAL ANNUAL FIXED EXPENSES: Your cost to own this house.
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TOTAL GROSS INCOME: Based on a seasonal schedule.
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TOTAL OPERATING EXPENSES: Again, based on a seasonal program.
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NET INCOME: Applied to defray your cost of ownership.
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TOTAL CASH DEFICIT: Out of pocket cash to own house.
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IRS RAMIFICATIONS:
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You now own an apartment building which consists of one unit and are able to deduct losses from your 1040. No provisions are made for state income taxes, of any.
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Note that this rental schedule results in the house being vacant for most of May and June as well as September and October.
Not taken into acount for the IRS are expenses for travel, owner management, replacement of personal property, repairs and any other miscellaneous expenses.
This information in not warranted, guaranteed or verified and may vary subject to selected properties due to size, age, condition and location. This information is also subject to change without notice.
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