Example Plan 1 Math

	A	B	C	D	E	F	G	H
1		Buying Standards Book Version
2		Plan Duration in Years	7-10 +/-		Template Purchase of 4-Plex
3		Multiplex Units	4		Value	$100,000
4		Apartment Units	24		Purchase Price	$80,000
5		% Down Payment	20%		20% Down Payment	$16,000
6		Cash flow per month after expenses	$200		Loan	$64,000
7		% of property value to purchase for (needs cosmetic assistance)	80%		Forced Appreciation Cost	$4,000
8		Forced appreciation during first year	7%		Investment	$16,000
9		Natural appreciation each year	3%
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12		End of	Year 1	Year 2	Year 3	Year 4 This is what the #'s SHOULD be	Year 4 These are book provided #'s	How I believe the book numbers were arrived at. Property A 4 years owned, Property B 3 years owned, Property C 2 years owned
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14	Total	Value of Properties	$110,000	$113,300	$226,699	$343,500	$350,500	$350,199
15		Total # of Units	4	4	8	12	12	12
16		# of Months	12	24	24	36	36	36
17		Total Income	$10,000	$20,000	$20,000	$30,000	$30,000	$30,000
18		Combined Loans	$63,500	$63,000	$126,000	$188,500	$177,000	$187,500
19		Total Equity	$46,500	$50,300	$100,699	$155,000	$173,500	$162,699
20		Net Worth	$56,500	$70,300	$120,699	$185,000	$203,500	$192,699
21		(Sanity Check)	accurate	accurate	accurate	accurate		accurate
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23	Property A	Years Owned	1	2	3	4		4
24		Property Value	$110,000	$113,300	$116,699	$120,200		$120,200
25		# of Units	4	4	4	4		4
26		# of Months of income	12	24	12	12		12
27		Income ($400 round up/year)	$10,000	$20,000	$10,000	$10,000		$10,000
28		Loan	$63,500	$63,000	$62,500	$62,000		$62,000
29		Equity	$46,500	$50,300	$54,199	$58,200		$58,200
30		Worth	$56,500	$70,300	$64,199	$68,200		$68,200
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32	Property B	Years Owned			1	2		3
33		Property Value			$110,000	$113,300		$116,699
34		# of Units			4	4		4
35		# of Months of income			12	12		12
36		Income			$10,000	$10,000		$10,000
37		Loan			$63,500	$63,000		$62,500
38		Equity			$46,500	$50,300		$54,199
39		Worth			$56,500	$60,300		$64,199
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41	Property C	Years Owned				1		2
42		Property Value				$110,000		$113,300
43		# of Units				4		4
44		# of Months of income				12		12
45		Income				$10,000		$10,000
46		Loan				$63,500		$63,000
47		Equity				$46,500		$50,300
48		Worth				$56,500		$60,300
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