Compute the cash flow, tax flow, and after tax cash flow for the following real estate investment property.
Expected gross rents are expected to be $60,000 per year
Expected total variance allowance is 5%
Operating expenses per year: $8,000
Payment of mortgage per year
Interest: $12,000
Principal $6,000
Total: $18,000
Depreciation for the year: $18,750
The owner’s income tax bracket is 25%
Cash Flow______
Tax Flow_______
After tax cash flow_______