Can someone please explain me about this blog I've mentioned?

[Jasraj Singh]

I was reading an interesting blog 

https://www.biggerpockets.com/...

written by Brandon Turner but I did not understand couple of things from this blog which was =

1. How is our loan for $63,500 after paying 20% of $80,000 in Year One. Shouldn't it be $64,000.

2. In year one how is our equity $46,500 in year one?

3. How is our total net worth $56,500 in year one? 

and can a property really be appreciated by 10% in one year by doing some minor repairs and improvements in it?

Can some one please explain?

[Scott Passman]

1. I'm not sure either why $63,500 was used instead of 64k because 20% of 80,000 is in fact 64,000.

2.  He mentioned that actual value of the home was 100k and that it grew in value by 10% due to a combination of forced appreciation (renovation work) and natural market appreciation. So this means after 1 year the value of the property was 110k.  Using those numbers, if the property value of 110,000 and you have a 63,500 loan then you have $46,500 in equity. 

3. He adds in the $10,000 of positive cash flow collected during the first year to the total equity of the property to calculate total net worth.  

4.  Absolutely. Last year I purchased a property for $107,500 and did 10k of rehab on it.  It appraised less than a year later for 152k which is about a 28% increase in value so it can absolutely be done.