{"id":113,"date":"2011-03-19T00:07:22","date_gmt":"2011-03-19T05:07:22","guid":{"rendered":"http:\/\/www.RealEstateAnalysisFREE.com\/blog\/?p=113"},"modified":"2021-04-28T05:35:10","modified_gmt":"2021-04-28T10:35:10","slug":"cash-flow-cfbt-and-cfat","status":"publish","type":"post","link":"https:\/\/www.zilculator.com\/blog\/cash-flow-cfbt-and-cfat\/","title":{"rendered":"Cash Flow (CFBT and CFAT)"},"content":{"rendered":"<p><strong>Cash flow <\/strong>is probably the first term which real estate investors learn in <strong>property analysis<\/strong>. It simply represents all the inflows and outflows of cash for a certain property. Next to appreciation and tax shelter, it is one of the most important Real Estate investment returns. Cash flow is not affected by a depreciation deduction since it is not a cash item. However it is affected not only by the interest portion but by the entire amount of the mortgage payment. All the capital additions or improvements paid during the year have to be subtracted from the total incomes and therefore lower the Cash Flow.<\/p>\n<p>It is possible to calculate cash flow before taxes (CFBT), which is used more often or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.<\/p>\n<!-- WP QUADS Content Ad Plugin v. 2.0.17 -->\n<div class=\"quads-location quads-ad2\" id=\"quads-ad2\" style=\"float:none;margin:0px;\">\n\n <!-- WP QUADS - Quick AdSense Reloaded v.2.0.17 Content AdSense async --> \n\n\n<script type=\"text\/javascript\" >\nvar quads_screen_width = document.body.clientWidth;\nif ( quads_screen_width >= 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 1024  && quads_screen_width < 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 768  && quads_screen_width < 1024 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width < 768 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }\n<\/script>\n\n <!-- end WP QUADS --> \n\n\n<\/div>\n\n<p>Cash flow simply represents all the inflows and outflows of cash for a certain property. Next to appreciation and tax shelter, it is one of the most important Real Estate investment returns. Cash flow is not affected by a depreciation deduction since it is not a cash item. However it is affected not only by the interest portion but by the entire amount of the mortgage payment. All the capital additions or improvements paid during the year have to be subtracted from the total incomes and therefore lower the Cash Flow. It is possible to calculate cash flow before taxes (CFBT), which is used more often or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" class=\"aligncenter\" title=\"Cash Flow Before Taxes\" src=\"http:\/\/www.realestateanalysisfree.com\/images\/blog\/cfbt.gif\" alt=\"\" width=\"535\" height=\"56\" \/><\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" class=\"aligncenter\" title=\"Cash Flow After Taxes\" src=\"http:\/\/www.realestateanalysisfree.com\/images\/blog\/cfat.gif\" alt=\"\" width=\"535\" height=\"56\" \/><\/p>\n<p><strong>Note:<\/strong> Zilculator published a new LEARN section with an updated article including <a href=\"https:\/\/www.zilculator.com\/real-estate-analysis\/cash-flow-formula-excel-example\">Cash Flow (CFBT, CFAT) excel template<\/a>.\n","protected":false},"excerpt":{"rendered":"<p>Cash flow is probably the first term which real estate investors learn in property analysis. It simply represents all the inflows and outflows of cash for a certain property. Next&#8230;<\/p>\n","protected":false},"author":1,"featured_media":69061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[15,68],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cash Flow (CFBT and CFAT) | Zilculator: Real Estate Investment Analysis blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zilculator.com\/blog\/cash-flow-cfbt-and-cfat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash Flow (CFBT and CFAT) | Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"og:description\" content=\"Cash flow is probably the first term which real estate investors learn in property analysis. 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