Deal Analysis Spreadsheet

[Paul Stamm]

Hi BiggerPockets community!

I have recently been listening to lots of podcasts and reading books on real estate. I have began to analyze potential properties using a spreadsheet that I created. 

I would love if someone could check it out and possibly give me some feedback on what they think of it. Are there any errors? Is there anything I should add? 

Any advice would be greatly appreciated!

Here's the link: https://docs.google.com/spread...

Thanks!

[Mitch Messer]

Hey @Paul Stamm, welcome to BiggerPockets and congratulations on tackling the creation of your personal deal analysis spreadsheet!

I often say the deal analysis spreadsheet is to an investor what their light saber represents to a Jedi: You can't just buy one off the shelf. The very act of creating it from scratch is what marks you as a serious operator!

That said, a couple of things to note:

• Net Operating Income (NOI) [S8] does not include Capital Expenditures. NOI considers only Operating Expenses, which are directly required for the operation of the property.
• Similarly, Mortgage Payments [M6] are not an Operating Expense, and shouldn't be included in your NOI calculation.
• Total Cost Out of Pocket [J8] currently includes both the Purchase Price and the Loan Amount, when you really want the Downpayment. If the property is bought at $180K and the loan is for $150K, the Total Cost Out of Pocket won't be the sum of those, but instead just the $30K down + Repairs + Closing Costs + Holding Costs.

Hope this helps!

(You're doing great, by the way! I only wish I had your mindset when I was 18, a million years ago...)