Metrics
After-Tax Cash Flow
Monthly cash flow plus estimated monthly tax savings from depreciation. The real number that hits your pocket post-tax.
Why After-Tax Cash Flow matters
Most investors compare deals on pre-tax cash flow, but the post-tax number can shift the verdict. A deal that looks marginal pre-tax often pencils strongly after depreciation savings, especially for high-bracket investors.
Related terms
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…
Tax Savings
Estimated monthly federal income tax saved by depreciation and (optionally) mortgage interest deduct…
Depreciation Period
27.5 years for residential rentals (IRS standard); 39 years for commercial. Determines annual non-ca…