Scenario Charts

These are the pages related to the  Scenario  Charts which we sometimes write by combining the icons and text as Scenario Charts.

You can learn more about what each measures, how it is calculated, what it is used for, what reports it shows up in, how we use them with different  Characters and see examples of the Chart by clicking through the various posts below.

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more

True Cash Flow™

Ep 5 - Andrea - Total True Cash Flow - Monte Carlo

You’ve heard of cash flow on rental properties. Basically, it is defined by taking all the income from your rentals minus all your expenses. Cash Flow = Income – Expenses But, have you heard about True Cash Flow™? True Cash Flow™ is your traditional cash flow plus Cash Flow from Depreciation™. True Cash Flow™ = Cash Flow + Cash Flow from Depreciation™ If you’re familiar with the Return Quadrants™, True Cash Flow™ is represented by the returns from these two sections: Post Depreciation Period Depreciation for a residential rental property typically lasts 27.5 years. Since True Cash Flow™ is really … Read more

Inflation Rate

Inflation Rate

The Scenario Chart for the Inflation Rate shows you what the inflation rate is for the Scenario. For many of the basic real estate financial planning models and podcast episodes that we do, we use a static Inflation Rate for the entire  Scenario. However, I don’t believe this is the best way to do it. Whenever possible, I strongly suggest using Alternate Universe Modeling™ (aka  Monte Carlo) with variable Inflation Rates to see how the entire investing strategy performs in a variety of inflationary environments (low and high). These are considered our advanced modeling. For example, when we apply the … Read more