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Updated over 4 years ago on . Most recent reply

User Stats

17
Posts
6
Votes
Michael Hahn
  • Indianapolis, IN
6
Votes |
17
Posts

Error or User Error?? Rental Property Calculator

Michael Hahn
  • Indianapolis, IN
Posted

Hello-

I'm stuck, cannot figure this out. I feel this calculator must have an error, it's that or idiot error by me. Attaching 2 sample rental property calcs for reference. I've been running a few flatline scenarios with 0% property value growth, 0% income growth, and 0% expense growth. Of course I'm paying down principal over time, but my confusion regards how the 'profit if sold' continues to grow over time in this scenario. 

Importantly, neither scenario is showing much if any cash flow. The highest cash flow of the 2 cash flows $100 per YEAR on a ~$160k property. The output of this report however shows a 'profit if sold' at year 30 as $108k on the $160k property. I don't see how this is possible. Basically the same story in the other report. 

https://www.biggerpockets.com/analysis/rentals/3e529fc5-cccf-4f57-a4e9-700e9874b94c.pdf

https://www.biggerpockets.com/analysis/rentals/bb2ce1eb-90ce-4660-908a-61f677522c4d.pdf

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