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All Forum Posts by: Samuel Lema

Samuel Lema has started 1 posts and replied 1 times.

Post: Approximating Profit From Sale of Home

Samuel LemaPosted
  • New to Real Estate
  • Ithaca, NY
  • Posts 1
  • Votes 0

I'm creating an excel sheet for calculating Buy&Hold similar to the bigger pockets calc with some extra stuff. I'm currently having trouble with creating an equation for the estimated profit after the sale of the property. This is what I have so far:

Profit = (Purchase Price - Outstanding Loan Balance)*( 1 - Sale Expenses - Capital Gaines Tax)

Sale Expenses, I usually round to be about 10% including commission fees, HOAs, and attorney fees. 

Capital Gains Tax: 25% if over a 1-year hold, 35% if below a 1-year hold. 

Let me know what equation you guys use and if I should account for anything else.