Quote:
Originally posted by Dantilla
I've been looking at NOI and then figuring out the debt service with a mortgage calculator to see actual cash flow. sometimes my calculated cash flow is quite a bit different from what the cap rate would suggest.
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Where things really go wrong with what brokers "paint for you" comes in the expenses. When you buy a property, the taxes you pay will be higher than the current owner. The current owner might be "self-insuring", whereas you plan to pay insurance. Be sure to calculate your own expenses.