All Forum Posts by: Eric Sipe

@Pat L.

I can try to find a way around that type of property for sure. I guess I didn't know of any properties with $0 invested capital. Since CoCROI is annual cash flow/actual capital invested, the CoCROI would technically be an indefinably huge number since you cant divide by zero.

Is that right? (I'm still going to fix that problem on my calculator, I just want to make sure my thinking is right). Also, did the other properties work well? What other changes would you think i should make?

Thanks,

Eric

@Pat L.

Thanks for the feedback! The CoCROI cant be calculated unless you put some kind of cost in the ROI section. Do you have any rehab costs, closing costs, down payment or misc costs?

Eric

And in case I was not clear, please change the numbers and use it so i can make sure it works as well as i hope.

Also, each cell that you have to fill out, there is an explanation you can see if you hover your mouse over it (so the calculator is used correctly so I can get proper feedback).

Hello all,

I made a Google Sheet/calculator for analyzing properties. Over the last several months, I have been fine-tuning it in order to present it here for feedback. I am looking for constructive criticism/feedback in order to better the program I made for myself for analyzing rental properties. Instructions are on the link to the Google Sheet provided on this hyperlink. 

I look forward to hearing your thoughts on my calculator!

Thanks,
Eric

Edit: this is for a rental property if that wasn't made clear. Specifically, a multifamily is what I'll be looking for.

Hello all,

I am hoping someone will be able to help me. I am about to begin analyzing properties and want to make sure I have the correct formulas for each important item. I would appreciate it if anyone can tell me if my formulas are right/wrong. If I need to provide an example, please let me know!

Annual operating expenses = annual taxes+insurance+utilities+HOA fees+lawn/pests+vacancy+repairs+property management (i.e. does not include CapEx or mortgage)
NOI = annual gross income-annual operating expenses
Cap Rate = NOI - purchase price
Pro Forma Cap Rate = NOI / after repair value
Cash on Cash ROI = total annual cashflow / total invested capital
Total Initial Equity = (down payment + closing costs + estimated repair costs) + (after repair value - total cost of project)
Gross Rent Multiplier = purchase price / annual income

That is a lot of formulas! I just want to make sure I am going to be analyzing correctly. 

Thanks a lot,
Eric

@Tyler Mullen

Would you be able to elaborate some more please? I've never come across that term (debt setup). Do you mean just planning who pays what in advance or?

Thanks!

@John Lane

I am no expert, and am in fact new myself. However, the first book I read was "The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Smart Buy & Hold Real Estate Investing" by Brandon Turner here at BP. It was well-written and explained SO many things. The book is truly invaluable and a huge resource for me.

Hope this helps!

@Jonathan Twombly

Thanks for the info! We are certainly getting a lawyer (we are meeting with one in a few weeks to see if he will fit with our team), I'm just impatient with finding answers.

Thanks again!