| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
1 | Go to File > Make a Copy to play with this spreadsheet yourself | |||||
2 | ||||||
3 | BASIC PURCHASE INFORMATION | FINANCIAL PERFORMANCE SUMMARY | ||||
4 | Property Value (est.) | $70,000 | Capitalization Rate | 12.4% | ||
5 | Purchase Price | $53,000 | Cash-on-Cash Return | 28.5% | ||
6 | Down Payment | $10,600 | Total Equity (Year 5) | $46,230 | ||
7 | Equity at Purchase | $27,600 | ||||
8 | ||||||
9 | ||||||
10 | MORTGAGE CALCULATION | CALCULATION ASSUMPTIONS | ||||
11 | Interest Rate | 5.00% | Rental Income (mo.) | $750 | ||
12 | Down Payment | 20% | Vacancy Allowance | 5% | ||
13 | Loan Term (Fixed) | 30 | Maintenance Reserve | 3% | ||
14 | Loan Amount | $42,400 | Management Fee | 10% | ||
15 | Annual Payment | $2,731 | Property Taxes | $80 | ||
16 | Monthly Payment | $228 | Insurance | $25 | ||
17 | Homeowners Assoc. | $0 | ||||
18 | Utilities | $0 | ||||
26 | Misc Expenses | $0 | ||||
37 | Rental Income Increase | 3% | ||||
38 | Property Tax Increase | 3% | ||||
39 | Utilities Increase | 4% | ||||
40 | Misc Expenses Increase | 4% | ||||
41 | CASH TO PURCHASE | Building to Land Value Ratio | 75% | |||
42 | Down Payment | $10,600 | Appreciation Rate | 4% | ||
43 | Closing Costs | $1,272 | Closing Costs (Buy) | 3% | ||
44 | Total Cash Required | $11,872 | Closing Costs (Sell) | 8% |
| A | B | C | D | E | F | G | L | V | AF | |
|---|---|---|---|---|---|---|---|---|---|---|
1 | ||||||||||
4 | CASH FLOW | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 | |
5 | Gross Scheduled Income | $9,000 | $9,270 | $9,548 | $9,835 | $10,130 | $11,743 | $15,782 | $21,209 | |
6 | less Vacancy Allowance | $450 | $464 | $477 | $492 | $506 | $587 | $789 | $1,060 | |
7 | Total Operating Income | $8,550 | $8,807 | $9,071 | $9,343 | $9,623 | $11,156 | $14,992 | $20,149 | |
8 | ||||||||||
9 | Property Taxes | $960 | $989 | $1,018 | $1,049 | $1,080 | $1,253 | $1,683 | $2,262 | |
10 | Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
11 | Homeowners Association | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
12 | Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
20 | Misc Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
31 | Maintenance Reserve | $270 | $278 | $286 | $295 | $304 | $352 | $473 | $636 | |
32 | Property Management | $900 | $927 | $955 | $983 | $1,013 | $1,174 | $1,578 | $2,121 | |
33 | Total Operating Expenses | $2,430 | $2,494 | $2,560 | $2,628 | $2,697 | $3,079 | $4,035 | $5,319 | |
34 | ||||||||||
35 | Net Operating Income (NOI) | $6,120 | $6,313 | $6,511 | $6,715 | $6,926 | $8,077 | $10,958 | $14,829 | |
36 | less Mortgage Expenses | $2,731 | $2,731 | $2,731 | $2,731 | $2,731 | $2,731 | $2,731 | $2,731 | |
37 | -$11,872 | ANNUAL CASH FLOW | $3,389 | $3,581 | $3,780 | $3,984 | $4,194 | $5,345 | $8,226 | $12,098 |
38 | MONTHLY CASH FLOW | $282 | $298 | $315 | $332 | $350 | $445 | $686 | $1,008 | |
42 | ||||||||||
43 | TAX BENEFITS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 | |
44 | Depreciation | $1,909 | $1,909 | $1,909 | $1,909 | $1,909 | $1,909 | $1,909 | $0 | |
45 | Mortgage Interest | $2,106 | $2,074 | $2,040 | $2,005 | $1,968 | $1,751 | $1,117 | $73 | |
46 | ||||||||||
47 | EQUITY ACCUMULATION | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 | |
48 | Property Value | $72,800 | $75,712 | $78,740 | $81,890 | $85,166 | $103,617 | $153,379 | $227,038 | |
49 | less Mortgage Balance | $41,774 | $41,117 | $40,426 | $39,699 | $38,935 | $34,489 | $21,460 | $0 | |
50 | EQUITY (WEALTH) | $31,026 | $34,595 | $38,315 | $42,191 | $46,230 | $69,128 | $131,919 | $227,038 | |
54 | ||||||||||
55 | FINANCIAL PERFORMANCE | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 | |
56 | Capitalization (Cap) Rate | 8.4% | 8.3% | 8.3% | 8.2% | 8.1% | 7.8% | 7.1% | 6.5% | |
57 | Cash on Cash Return (COC) | 28.5% | 30.2% | 31.8% | 33.6% | 35.3% | 45.0% | 69.3% | 101.9% | |
58 | Return on Equity (ROE or COCE) | 76.8% | 20.7% | 19.6% | 18.6% | 17.8% | 14.9% | 11.9% | 10.3% | |
59 | Annualized Return (APY) | 140.8% | 72.9% | 53.3% | 43.5% | 37.5% | 24.3% | 16.0% | 12.7% | |
60 | Internal Rate of Return (IRR) | 140.8% | 79.4% | 62.0% | 53.7% | 48.7% | 38.6% | 34.4% | 33.9% | |
61 | Return on Investment (ROI) | 140.8% | 199.1% | 260.2% | 324.3% | 391.5% | 777.0% | 1850.2% | 3466.1% |