Introduction to Deal Analyst, J. Scott figures

[Joel Bowen]

Hey guys so I have really been studying the last few months. I have really been trying to create my own spreadsheets and make sense of all these numbers. I have a few questions relating to J. Scott's article entitled "Introduction to Real Estate Investing". You can locate the article here if you would like to reference it: http://www.biggerpockets.com/renewsblog/2010/6/30/...

1.So under Cost Assumptions on the top left, the last number under selling costs is 7%. I have tried a gazillion calculations but I am not sure where that number is coming from. Could somebody help me with the math where this number comes from?

2. How can I estimate Annual Revenue Increase, Annual Operating Expense Increase, and Annual Appreciation? I know each area in the market is different, how can I find these figures for my local market?

Thanks,