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Updated over 5 years ago,
Question about Buy & Hold Analysis Calculator
Hi all,
I recently ran a property I was interested in, through the BP Buy & Hold Analysis calculator. But, because it's easier for me to wrap my head around things if I understand where the numbers/values come from I've tried to independently calculate some of the metrics from the calculator. Everything has worked out well except the Cash on Cash ROI. I just can't seem to get the same percentage the report generates regardless of how I plug the numbers in. I've studied this article from @Brandon Hall extensively to try and understand how that percentage is being calculated. The closest I can get is a CCR of 31% but the calculator returns a value of 14%. So can anyone clarify exactly what metrics are going into this calculation?
Based on Brandon's article, I suspect there was a simplification in the "Annual Debt Service" number that isn't present in the numbers generated by the calculator. Any help you all can provide on this metric would be immensely helpful in my ability to fully comprehend the report.
Matt
@Brandon Hall