FAQ: How is Total Net Rental Cash Flow (Non-Subject) Calculated?

Q: What is Total Net Rental Cash Flow (Non-Subject Properties), and how does Charlie calculate it?

A: Total Net Rental Cash Flow (Non-Subject Properties) represents the combined rental income—after expenses—across all non-subject properties. This helps determine if your other rental properties are financially contributing or adding risk to your loan.

Charlie calculates this by summing up net rental income from all second homes and investment properties, excluding the subject property.

Calculation Logic:

1. Total Net Rental Cash Flow for Non-Subject Properties:

Total All Other Rental Properties Net Cash Flow Monthly Amount
= Sum of Net Rental Cash Flows for all non-subject properties where:

• Current usage type = Second home or investment

• Proposed usage type ≠ Primary

• Rental income = Yes

• Subject property indicator = No or blank

If the total net rental cash flow is greater than or equal to zero, it’s considered positive net rental.

• It will be displayed in the Income PIP and included in total income calculations.

If the total net rental cash flow is less than zero, it’s considered negative net rental.

• It will be displayed in the Credit PIP and included in total liability calculations.

2. Total Primary Residence (Non-Subject) Monthly Rental Income Amount:

Total Primary Residence Monthly Rental Income Amount
= Sum of Net Rental Cash Flows for primary residences where:

• Current usage type = Primary

• Proposed usage type = Primary or "--" (no change)

• Rental income = Yes

• Subject property indicator = No or blank

Important Note:

• Rental cash flow for properties with a proposed usage type = Primary is always added to income.

• However, this amount is NOT included in total non-subject net rental cash flow.

This amount is displayed in the Income PIP and included in total income calculations.