2 quick questions about cashflow.....
1. Should I be including mortgage principle in my calculation to determine if a property will cash-flow, or do I include only expenses such as mortgage interest, property tax, property management, income tax and maintenance.
2. Along the same lines, if I have a HELOC on same property, and I am using those LOC funds for other purposes should I becounting the interest charges against this house, or accounting for it otherwise? It seems obvious on the surface that because it is for other purposes that it should be accounted for otherwise, but the reality is if I sold the house I could (and would ahve to) pay off the LOC... so therefore they are sort of connected.
Answering these 2 questions would really help me to figure out where I`m at
Thanks everyone!
1. Should I be including mortgage principle in my calculation to determine if a property will cash-flow, or do I include only expenses such as mortgage interest, property tax, property management, income tax and maintenance.
2. Along the same lines, if I have a HELOC on same property, and I am using those LOC funds for other purposes should I becounting the interest charges against this house, or accounting for it otherwise? It seems obvious on the surface that because it is for other purposes that it should be accounted for otherwise, but the reality is if I sold the house I could (and would ahve to) pay off the LOC... so therefore they are sort of connected.
Answering these 2 questions would really help me to figure out where I`m at
Thanks everyone!