Metrics
After-Tax Cash Flow
Monthly cash flow plus the estimated year-1 net tax effect — deductions (depreciation, deductible interest, operating expenses) netted against tax owed on the rental income. The same simplified math as the Illustrative Tax Impact panel's year-1 line.
Why After-Tax Cash Flow matters
Most investors compare deals on pre-tax cash flow, but the post-tax number can shift the picture in both directions: a leveraged deal's deductions can turn a small pre-tax loss into an after-tax positive, while a strong cash-flower can owe tax on its rental income. TrueCap nets the two rather than counting deductions as a one-way bonus.
Related terms
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…
Illustrative Tax Effect
Illustrative monthly year-1 tax effect at the entered marginal rate: modeled deductions netted again…
Depreciation Period
27.5 years for residential rentals (IRS standard); 39 years for commercial. Determines annual non-ca…
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