Bug in Calculator or are my maths terrible?

[Daniel K.]

Hi,

New biggerpockets member. I went pro because of the calculators, etc. So far everything has been great but I've been playing around with the calculators and can't get the numbers to foot. I created a "dumb" calculation with obviously fake numbers to make the mental math easier. It can be found here:

https://bp-v-newproduction.s3.amazonaws.com/uploads/calculators/shared_report/report_file/4ca075c3-8c5e-402d-9441-dad442f1fcd3/report.pdf?X-Amz-Expires=601200&X-Amz-Date=20190806T091520Z&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAINAFXR3SDILSVHQA%2F20190806%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-SignedHeaders=host&X-Amz-Signature=e199a10ec756c9daf8cea38f3fc19d9fef8c725a3037a4217e9bc42c53f7b947

I don't know how the year 2 figures are calculated. It shows a positive profit if sold of 4K.

If I assume 0 appreciation across the board, 0 financing costs, 0 cost of sale... should not the profit be:

Value - Equity Purchased - Loan Principal - Cum. Net Expenses.. i.e. -16K?

Or a simpler calculation: House Worth - Loan Principal - Sales Expense - Net Year Opex = -8K

If somebody could walk me through the math, it would help a lot! Thanks!

Daniel

[Tim Herman]

@Daniel K. year 2 Equity $40000 less $16000 negative cash flow = $24000 less original cash outlay for closing cost of $20000 = $ 4000 net profit.