Phantom Cash Flow in Real Estate: Depreciation on Rental ... by Taxes & mortgages

Mon, 03 May 2010 02:00:05 -0500

Phantom Cash Flow in Real Estate: Depreciation on Rental ...

by Taxes & mortgages @ Mon, 03 May 2010 02:00:05 -0500
Rental properties with positive flow can show a loss, granting the owner a tax deduction, or, as Robert Kiyosaki calls it, Phantom Cash Flow. ... A rental property might bring in $1100 every month that covers the monthly mortgage of $975 along with $50 in average maintenance and repairs, netting a profit of $75. But when depreciation is added ((total cost of house plus money invested)/31 years) the yearly cash flow of $900 goes into the red, netting a loss rather ...