Pinpoint the best real estate market for your specific goals with expert recommendations and real-time data on appreciation, affordability, rent to price ratio, and more.
I just noticed a disagreement between @J Scott ‘s SFH_Rental_Analysis and @Brandon Turner ‘s Four Square method for calculating the cash-on-cash return. It may just be me overlooking something but J Scott doesn’t include the cost of the rehab in the calculation where Brandon does. Unless the rehab cost will be included in the loan I feel it should be included in the calculation. I really want to understand how this is supposed to be calculated so I do it properly when analyzing properties. Anyone have any insight?
Great spreadsheet! Very helpful since I'm not a pro member and don't have unlimited use of the calculators yet. One thing I noticed: no matter what values I put in for for purchase price, loan amount, etc, the equity accrued row does not change so it always shows 64k as the total equity accrued after 30 years
Should this spreadsheet be used if i am paying cash for the property? I realize I can leverage. I want to pay cash. When I list downpayment is 100% and update the rest of that H column, Cash flow section no longer returns values. Is there a better spreadsheet for cash purchases?
Hello, I know this calculator came out a while ago but I got a question pertaining to Total ROI. I want to make sure I have these understood correctly and don't want to make a mistake calculating rental expenses. According to your spreadsheet you have Total ROI for year 1 being calculated by =F44/H9. Why wouldn't it be calculated =F44/D8. You'd also have to set annual revenue increase and annual operating cost to 0 as this throws off calculations in the future Total ROI.
Thanks for this!
Would this also be suitable for 2-4 unit properties?
If not, do you have a similar spreadsheet for multifamily properties? Or what would I need to alter to account for multifamily homes?
Mark is right. I had to change that cell to factor in potential HOA fees.
Thank you J, this is an excellent tool that I have been using to evaluate all my potential deals.
Thanks for sharing this -- great tool. I think it might need one small correction. Should cell F32 be "=E32*12" since D32 specifies a monthly expense as opposed to an annual expense?
PM stands for Profit Margin. Variable Cost are costs that change in proportion to the rent (i.e. variable operating expenses). Fixed Costs are those that remain the same no matter the rent (i.e. a recurring bill like property taxes). The VC PM and FC PM = Rent Revenue - (VC or FC).
Thanks--I think I'll be able to make very good use of this. Do you use it primarily to assess a potential rental property, or to track a rental you already own? Also, what are these fields: Variable Cost PM and Fixed Cost PM? I've been racking my brain, but can't figure it out. I'm sure it's something ridiculously simple. :)
Thanks again!
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