Expenses V when hom...
 
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Expenses V when home sold

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(@hines202)
Reputable Member Customer
Joined: 3 years ago
Posts: 331
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In looking at the analysis graphs for historical/monte carlo, the year a home is sold there's a big V drop down and then back up for the expenses line on the graph. It does come back up to where it should be expense-wise after the home is out of the picture, but why does it drop down like that? It's just for the one year of the home sale. I'll attach a pic.


   
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(@smatthews51)
Member Admin
Joined: 4 years ago
Posts: 689
 

Bill,

PRC's Property page falls under the general category of expenses and, therefore, "expenses" is the only value that flows from this page onto PRC's integration page. As a result, in the cases where "income" is generated from the sale of a property it is treated as a negative expense. This, in turn, is figured into the cash flow calculation. This is the simplest way to handle the math but it does result in the large drop (even possibly to a negative value) in the expenses that year (which is what you're seeing on the graph). The alternative would be to show a big upward spike in income that year but that would be algorithmically more complex so I made the design choice to show it as a negative expense.


   
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