Taxes - Cashflow Rentals | USA Property Investments

Non Resident Alien Tax Guide: Everything You Need to Know

Read my comprehensive 2025 non resident alien tax guide for buying, owning, and selling real estate in the United States of America

Non Resident Alien Tax Guide: Everything You Need to KnowDavid Garner2025-07-29T17:44:27-04:00

English

*/ (function(){ const $ = (id) => document.getElementById(id); const fmt = (n, opts={}) => { const v = (isFinite(n) ? n : 0); const o = { style:'currency', currency:'USD', maximumFractionDigits:0, ...opts }; return new Intl.NumberFormat('en-US', o).format(v); }; const pct = (n, d=2) => `${(isFinite(n)? n : 0).toFixed(d)}%`;function payment(principal, annualRatePct, years) { const r = (annualRatePct/100)/12; const n = years*12; if (r === 0) return principal/n; return principal * (r * Math.pow(1+r, n)) / (Math.pow(1+r, n) - 1); } function balanceAfter(principal, annualRatePct, years, monthsElapsed) { const r = (annualRatePct/100)/12; const n = years*12; if (r === 0) return principal * (1 - monthsElapsed/n); const pmt = payment(principal, annualRatePct, years); return principal*Math.pow(1+r, monthsElapsed) - pmt*( (Math.pow(1+r, monthsElapsed) - 1)/r ); } function cumulativePrincipalPaid(principal, annualRatePct, years, monthsElapsed){ return principal - balanceAfter(principal, annualRatePct, years, monthsElapsed); }const ids = [ 'price','downPct','rate','term','rent','otherIncome','vacancy','mgmtPct', 'taxesAnnual','insAnnual','hoaMonthly','maintPct','repairsMonthly','otherMonthly','closingPct','initialRepairs', 'holdYears','appreciation','rentGrowth','expGrowth','sellCostPct','landPct','incomeTaxPct','cgTaxPct' ]; const out = { cashflow: $('m-cashflow'), caprate: $('m-caprate'), coc: $('m-coc'), dscr: $('m-dscr'), ads: $('m-ads'), noi: $('m-noi'),gsr: $('o-gsr'), vac: $('o-vac'), egi: $('o-egi'), opex:$('o-opex'), mort:$('o-mort'), oNoi:$('o-noi'),ltSale: $('lt-sale'), ltBal: $('lt-balance'), ltSell: $('lt-sellcosts'), ltCF: $('lt-cf'), ltPrin: $('lt-principal'), ltNet: $('lt-net'), ltProfit: $('lt-profit'), ltRoi: $('lt-roi'), ltAnn: $('lt-annualized'),cashNeeded: $('m-cashneeded') }; if (!out.cashflow) return;// Defaults const defaults = { price: 300000, downPct: 25, rate: 7.25, term: 30, rent: 2200, otherIncome: 0, vacancy: 5, mgmtPct: 8, taxesAnnual: 3600, insAnnual: 1500, hoaMonthly: 0, maintPct: 8, repairsMonthly: 100, otherMonthly: 0, closingPct: 3, initialRepairs: 0, holdYears: 5, appreciation: 3, rentGrowth: 2, expGrowth: 2, sellCostPct: 8, landPct: 20, incomeTaxPct: 24, cgTaxPct: 15 };// Initialize placeholders ids.forEach(id => { const el=$(id); if(el && !el.value) el.value = defaults[id] ?? ''; });function valNum(id){ const el = $(id); if(!el) return 0; const v = parseFloat(String(el.value).replace(/,/g,'')); return isFinite(v) ? v : 0; }function recalc(){ // Inputs const price = valNum('price'); const downPct = valNum('downPct'); const rate = valNum('rate'); const term = valNum('term');const rent = valNum('rent'); const otherIncome = valNum('otherIncome'); const vacancy = valNum('vacancy'); const mgmtPct = valNum('mgmtPct');const taxesAnnual = valNum('taxesAnnual'); const insAnnual = valNum('insAnnual'); const hoaMonthly = valNum('hoaMonthly'); const maintPct = valNum('maintPct');const repairsMonthly = valNum('repairsMonthly'); const otherMonthly = valNum('otherMonthly'); const closingPct = valNum('closingPct'); const initialRepairs = valNum('initialRepairs');const holdYears = valNum('holdYears'); const appreciation = valNum('appreciation'); const rentGrowth = valNum('rentGrowth'); const expGrowth = valNum('expGrowth'); const sellCostPct = valNum('sellCostPct');// Financing const downPayment = price * (downPct/100); const loanAmount = Math.max(price - downPayment, 0); const mortPmt = (loanAmount>0 && term>0) ? payment(loanAmount, rate, term) : 0; const ads = mortPmt * 12;// Income (monthly) const grossMonthly = rent + otherIncome; const vacancyLoss = grossMonthly * (vacancy/100); const egiMonthly = grossMonthly - vacancyLoss;// Operating expenses (monthly) const mgmtMonthly = rent * (mgmtPct/100); // mgmt on rent only (common) const maintMonthly = rent * (maintPct/100); const taxesMonthly = taxesAnnual/12; const insMonthly = insAnnual/12;const opexMonthly = mgmtMonthly + maintMonthly + taxesMonthly + insMonthly + hoaMonthly + repairsMonthly + otherMonthly;// NOI (annual, pre-debt) const noiAnnual = (egiMonthly - opexMonthly) * 12;// Metrics const capRate = price>0 ? (noiAnnual/price)*100 : 0; const monthlyCashFlow = egiMonthly - opexMonthly - mortPmt; const cashNeeded = downPayment + (price * (closingPct/100)) + initialRepairs; const coc = cashNeeded>0 ? ((monthlyCashFlow*12)/cashNeeded)*100 : 0; const dscr = ads>0 ? (noiAnnual/ads) : 0;// Long-term (simplified projections) const months = holdYears*12; const futurePrice = price * Math.pow(1 + (appreciation/100), holdYears); const sellCosts = futurePrice * (sellCostPct/100); const loanBal = balanceAfter(loanAmount, rate, term, months); const principalPaid = cumulativePrincipalPaid(loanAmount, rate, term, months);// Grow rent & expenses with separate growth rates (straight-line monthly comp approx) const growthRentMonthly = rent * Math.pow(1 + (rentGrowth/100), holdYears); const avgRentMonthly = (rent + growthRentMonthly)/2; // simple average over period const avgOtherIncMonthly = otherIncome; // assume flat const avgGrossMonthly = avgRentMonthly + avgOtherIncMonthly; const avgVacLoss = avgGrossMonthly * (vacancy/100); const avgMgmtMonthly = avgRentMonthly * (mgmtPct/100); const growthMaintMonthly = (rent * (maintPct/100)) * Math.pow(1 + (expGrowth/100), holdYears); const avgMaintMonthly = (rent*(maintPct/100) + growthMaintMonthly)/2;const growthTaxesMonthly = taxesMonthly * Math.pow(1 + (expGrowth/100), holdYears); const avgTaxesMonthly = (taxesMonthly + growthTaxesMonthly)/2;const growthInsMonthly = insMonthly * Math.pow(1 + (expGrowth/100), holdYears); const avgInsMonthly = (insMonthly + growthInsMonthly)/2;const growthHOA = hoaMonthly * Math.pow(1 + (expGrowth/100), holdYears); const avgHOA = (hoaMonthly + growthHOA)/2;const growthRep = repairsMonthly * Math.pow(1 + (expGrowth/100), holdYears); const avgRep = (repairsMonthly + growthRep)/2;const growthOther = otherMonthly * Math.pow(1 + (expGrowth/100), holdYears); const avgOther = (otherMonthly + growthOther)/2;const avgEGIMonthly = avgGrossMonthly - avgVacLoss; const avgOpexMonthly = avgMgmtMonthly + avgMaintMonthly + avgTaxesMonthly + avgInsMonthly + avgHOA + avgRep + avgOther; const avgNOIAnnual = (avgEGIMonthly - avgOpexMonthly) * 12; const avgMonthlyCashFlow = avgEGIMonthly - avgOpexMonthly - mortPmt;const cfCumulative = avgMonthlyCashFlow * months; const netProceeds = Math.max(futurePrice - sellCosts - loanBal, 0); const totalProfitPreTax = cfCumulative + principalPaid + (netProceeds); // double counts? No: netProceeds already subtracts remaining loan; principalPaid counts via cash flow equity growth — we keep both cash flow + net proceeds (which is equity at sale). principalPaid is embedded in netProceeds vs original loan? Common approaches vary; we’ll show both CF and Net separately below and include principal explicitly. // To avoid double counting principal: treat netProceeds as (future equity realized) and ONLY add CF. We'll present principalPaid separately in UI. const totalProfit = cfCumulative + netProceeds; // preferred: CF + Net Sale (no double-count) const roiTotal = cashNeeded>0 ? (totalProfit / cashNeeded) * 100 : 0; const annualizedSimple = holdYears>0 ? (roiTotal/holdYears) : 0;// Outputs out.cashflow.textContent = fmt(monthlyCashFlow, {maximumFractionDigits:0}); out.caprate.textContent = pct(capRate, 2); out.noi.textContent = `NOI: ${fmt(noiAnnual, {maximumFractionDigits:0})}/yr`; out.coc.textContent = pct(coc, 2); out.cashNeeded.textContent = `Cash Invested: ${fmt(cashNeeded, {maximumFractionDigits:0})}`; out.dscr.textContent = `${(isFinite(dscr)? dscr : 0).toFixed(2)}×`; out.ads.textContent = `Annual Debt Service: ${fmt(ads, {maximumFractionDigits:0})}`;out.gsr.textContent = fmt(grossMonthly, {maximumFractionDigits:0}); out.vac.textContent = `−${fmt(vacancyLoss, {maximumFractionDigits:0})}`; out.egi.textContent = fmt(egiMonthly, {maximumFractionDigits:0}); out.opex.textContent = `−${fmt(opexMonthly, {maximumFractionDigits:0})}`; out.oNoi.textContent = fmt(noiAnnual, {maximumFractionDigits:0}); out.mort.textContent = `−${fmt(mortPmt, {maximumFractionDigits:0})}`;out.ltSale.textContent = fmt(futurePrice, {maximumFractionDigits:0}); out.ltBal.textContent = fmt(Math.max(loanBal,0), {maximumFractionDigits:0}); out.ltSell.textContent = `−${fmt(sellCosts, {maximumFractionDigits:0})}`; out.ltCF.textContent = fmt(cfCumulative, {maximumFractionDigits:0}); out.ltPrin.textContent = fmt(Math.max(principalPaid,0), {maximumFractionDigits:0}); out.ltNet.textContent = fmt(netProceeds, {maximumFractionDigits:0});out.ltProfit.textContent = fmt(totalProfit, {maximumFractionDigits:0}); out.ltRoi.textContent = pct(roiTotal, 2); out.ltAnn.textContent = pct(annualizedSimple, 2); }// Wire up listeners ids.forEach(id=>{ const el = $(id); if(!el) return; el.addEventListener('input', recalc); el.addEventListener('change', recalc); });// Buttons const btnSample = document.getElementById('rpc-load-sample'); const btnReset = document.getElementById('rpc-reset');btnSample && btnSample.addEventListener('click', ()=>{ Object.entries(defaults).forEach(([k,v])=>{ const el=$(k); if(el) el.value=v; }); recalc(); const adv = document.getElementById('rpc-adv'); if(adv && !adv.open) adv.open = true; }); btnReset && btnReset.addEventListener('click', ()=>{ ids.forEach(id=>{ const el=$(id); if(el){ el.value=''; }}); // sensible blank state recalc(); });// Initial if (out.cashflow) { recalc(); } })();

Join 5,000+ VIP Priority Investors Getting the Best Deals!

Get The Best DSCR Deals in Your Inbox!

Get Pre-Approved For Your DSCR Loan Today!

Register Your Seat and Access Immediately

Download the Guide and Due Diligence Checklist

Download Property Factsheet

Everything You Need To Know To Get Pre-Approved For U.S. Mortgages!

Everything You Need To Know About The Cleveland Real Estate Market

Everything You Need To Know About U.S. Taxes!

Download the Case Study Financials

Request a Call Back

Book a Call With Us

Priority Investor List

Get access to off-market investment opportunities

Access exclusive investment opportunities