Arty I think I should Change topic of this post to “Panic at Work”
My another story..
I was archiving one of my online project and in the process software sent out email to every one in my department saying their project will be archived in 5 minutes. At a time we run 100+ projects. []
Every one started asking me how to stop and what to do etc… Some how I manage to stop archiving their project since that day I haven’t tried archiving any project and told my boss to find some other solution to do this ( like buying more hard disk etc )
[]
Here is my answer before reading your last bit of post []
Vanilla ice cream
World peace
Out going
Blush and laugh it off
Speed, but only 10ks over the limit at best
Alot of acquaintances but not many close friends
You know where every cent goes
Hi Erika,
I was thinking of buying in Cobar and I put a post here before and lot’s of people replied. If you search you can find that post and answers to lot’s of you questions.
I think if you don’t have any idea about the property then it will take some time to understand things same happen to me when I was reading my first book some time ago. now when I read these type of books lot’s of time I know what writer going to write in next page []..
you will be perfect also.
do you have already your naked army which distracting you reading the book. []
Aoccdrnig to a rscheearch at an enligsh uinervtisy, it deosn’t mttaer
in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is
taht frist and lsat ltteer is at the rghit pclae. The rset can be a
toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae
we do not raed ervey lteter by it slef but the wrod as a wlohe.
Just to repeat this example
because I think we missed that we buying only $50k property in this example for postive and for negative $200k so let make postive also for $200k to make it easy we just buy 4 like that… then see the figure …
House 1 (positive)
Price $50k*4 = $200k
Cash flow +$5k*4 = $20k
Capital gain 10% = 5k*4 = $20K
Net return = 20k cashflow + 20k CG = $40k
House 2 (negative)
price $200k
Cash flow -$5k
Capital gain 10% = 20K
Net return = -5K cashflow + 20k CG = $15k
Now you see how +ve cashflow is better than negative cash…..
Cheers
Amit
quote:
House 1 (positive)
Price $50k
Cash flow +$5k
Capital gain 10% = 5k
Net return = 5k cashflow + 5k CG = $10k
House 2 (negative)
price $200k
Cash flow -$5k
Capital gain 10% = 20K
Net return = -5K cashflow + 20k CG = $15k
Here is a simple example of how negative cash flow can be better.
This is a very simple example. Cash flow includes depreciation and tax refunds/payments.
On the other side of things…
If you had a surplus income from your work pay less every day living expenses of $10k per year, then after you had purchased 2 of the House 2’s you would not have any money left to purchase any more and still pay off the mortgages. (Remember each property had a cash flow of -5K). There is no limit to how many House 1’s you could purchase.
I just used ez-rent with your numbers quickly and and come up with 8k+ cash flow after cash. When it’s saying annual loss in negative it mean that +ve cash flow. Please try to put numbers again. I think it’s good deal.