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Property Cashflow Analyzer
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Brought to you by:
http://www.chandler-property.com
and
http://www.BiggerPockets.com
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Purpose: The Property Analyzer is a tool to evaluate a property's cashflow characteristics. The areas highlighted in green
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are for the user to enter data. The yellow highlighted cells are automatically calculated. Enter in the basic information of
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the transaction and the spreadsheet will calculate several common ratios and profitability measures. Values are already
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entered in certain cells to demonstrate how the spreadsheet works. Type over the green cells with new information to
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analyze your transaction.
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Property Information
Cost Information
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Property Name
Building Cost $ 65,000
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LocationHouston, TxLand Cost $ 120,000
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Type of Property
Multi-Family (2 Doors)
Cost Basis $ 185,000
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Size of Property
2,000 Sq Feet
Less Mortgages
 $ -
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Equals Initial Investment
 $ 185,000
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Amortization Period
27.5
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Ratio Information
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Loan to Value
0%
Mortgage Information
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Cashflow / Initial Investment
9%BalancePaymentInterestLoan
Term		Amtz
Period
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Cashflow / Assets
9%1st Mtg $ - $ - 9%30360
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CAP Rate
9%
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Description (All Figures are Annual)
Annual
Amount		Notes
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1
POTENTIAL RENTAL INCOME
 $ 24,000
Total Potential Income if rented 100%
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2
Less: Vacancy
 $ (450)
Assumed 2% Vacancy Factor
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3
EFFECTIVE RENTAL INCOME
 $ 23,550
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Plus: Other Income
 $ -
Other Fees, charges, etc
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5
GROSS OPERATING INCOME
 $ 23,550 Total Revenue
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OPERATING EXPENSES
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6
Real Estate Taxes
 $ 3,700 Property Taxes
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Personal Property Taxes
 $ -
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Property Insurance
 $ 900
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Off Site Management
 $ -
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10Payroll $ -
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Expenses/Benefits
 $ -
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Taxes/Worker's Compensation
 $ -
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Repairs and Maintenance
 $ 1,000
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14Utilities $ 200
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Accounting and Legal
 $ -
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Licenses/Permits
 $ -
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Advertising
 $ 100
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18Supplies $ -
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Lawn and Grounds Keeping
 $ 400
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Miscellaneous
 $ 400
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TOTAL OPERATING EXPENSES
 $ 6,700
Sum of Line 6 thru 23
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NET OPERATING INCOME
 $ 16,850
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Less: Annual Debt Service
 $ -
Total Mortgage Payments
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CASH FLOW BEFORE TAXES
 $ 16,850
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Add Back: Principal Payments
 $ -
Principal Paid on Loan
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- Depreciation
 $ (2,364)
Tax Depreciation on Building
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TAXABLE NET INCOME (LOSS)
 $ 14,486
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Definitions
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Loan to Value (LTV) = Loan / Property Value
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LTV is a measurement of leverage. The higher the LTV, the more leveraged a property. Bank's use this to determine the
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riskiness of a loan. Generally, banks do not loan above 85% LTV.
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Net Operating Income (NOI)
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Total Potential Income
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-Vacancy
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=
Effective Gross Income
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-
Operating Expenses
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=NOI
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NOI measures the profitability of a property by excluding the cost of debt (mortgage). It essentially looks at the profitability of
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the property if it were paid off.
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Cap Rate - Net Operating income / Sales Price
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The Cap Rate is common measurement tool used by real estate professionals to measure the attractiveness of a property.
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Cap Rate measeures NOI as a percent of Sales Price. The higher the Cap Rate the better.
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Indicates an area for the user to enter data.
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Indicates an area that is automatically calculated.
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NOTE: This spreadsheet provided is best used as a reference and should not be considered a substitute for proper property analysis and should be used at your own risk.
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