|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Property Analyzer
|
|
|
|
|
|
|
|
Step 1: Replace sample data with your data and tab to next
entry. Analyzer updates after each
entry.
|
|
Step
2: View your projected results! Note that you can see the projected results
in three views below.
|
|
|
|
|
|
|
|
Purchase
of Property
|
|
*-How to Enter Data
|
View 1--Gross return
(think compound interest)
|
|
|
|
Price
you will pay for the property?
|
|
*-Enter amt., hit tab
|
Your safe investment
rate before taxes is
|
|
|
|
Down payment?
|
|
|
Your compound rate of
return on this property is
|
|
|
|
First mortgage amount?
|
|
|
This return is better
(worse) than your safe rate by
|
|
|
|
First mortgage period in years?
|
|
*-Enter yrs., hit tab
|
|
|
|
|
First mortgage interest rate?
|
|
|
View 2--After-tax
adjusted rate of return
|
|
|
|
Monthly payment (calculated)
|
|
|
Your safe investment
rate after taxes is
|
|
|
|
|
First mortgage points (percent)?
|
|
*-Enter %, hit tab
|
This property produces
an after-tax annual return of
|
|
|
|
Points (calculated dollar amount)
|
|
|
This return is better
(worse) than your safe rate by
|
|
|
|
Other first mortgage closing costs
|
|
|
|
|
|
|
Total costs to obtain mortgage
|
|
|
View 3--After-tax cash profit
(loss)
|
|
|
|
|
Closing costs to obtain title
(transfer/stamp taxes, survey, etc)?
|
|
|
In today's dollars
(present value), you invest
|
|
|
|
|
In tomorrow's dollars
(future value), you walk away with
|
|
|
|
Second mortgage? Enter 1 for yes, 2 for no.
|
|
|
|
This gives you a cash
profit (loss) of
|
|
|
|
|
|
|
Number of years you will
own this property
|
|
|
|
Second mortgage amount?
|
|
|
|
|
|
|
|
|
|
|
|
|
Second mortgage period in years?
|
|
|
|
|
|
|
|
Second mortgage interest rate?
|
|
|
|
Monthly payment (calculated)
|
|
|
|
Balloon payment on second
mtg? Enter 1 for yes, 2 for no.
|
|
|
|
|
|
|
Year of balloon payment?
|
|
|
|
Balloon payment (calculated)
|
|
|
|
|
|
Second
mortgage points or other
|
|
|
|
acquisition
costs?
|
|
|
|
|
|
|
Rental
Income
|
|
|
|
Monthly
rent?
|
|
|
|
Annual rent
|
|
|
|
Vacancy rate
as a percentage?
|
|
|
|
Net annual rental income
|
|
|
|
Expected annual increase in rent
as a percentage (your best guess)?
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
|
|
|
|
Federal
tax rate on ordinary income?
|
|
|
|
|
|
|
|
State tax rate on ordinary income?
|
|
|
|
|
|
Federal tax rate on unrecaptured section 1250 gain?
|
|
|
|
|
|
|
|
Federal tax rate on capital gains?
|
|
|
|
|
|
State tax rate on capital gains?
|
|
|
|
|
|
|
|
Do you qualify according to tax law to deduct your passive
losses? Enter 1 for yes, 2 for no.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Return
|
|
|
|
|
|
Annual
percentage return you earn on a safe investment?
|
|
|
|
|
|
|
|
Tax rate (combined state and federal) that applies to this safe
investment?
|
|
For
reference, your combined ordinary income state and federal tax rate is to the
right of this note.
|
|
|
|
|
After-tax safe return (calculated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation
in Property Value
|
|
|
|
|
|
Years
you intend to own this property?
|
|
|
|
|
|
Anticipated average annual appreciation in property value?
|
|
|
|
Selling price of property (calculated)
|
|
|
|
|
|
Real estate commissions and closing costs on the sale of this
property as a percentage of selling price?
|
|
|
|
|
|
|
|
Property Ownership/Carrying Costs
|
|
|
|
|
Real estate taxes per year?
|
|
|
|
Annual increase in real estate taxes?
|
|
|
|
Property management fees?
|
|
|
|
|
|
Annual increase in fees?
|
|
|
|
|
|
Tenant location fees?
|
|
|
|
|
|
Annual increase in fees?
|
|
|
|
|
|
Repairs and maintenance per year?
|
|
|
|
|
|
Annual increase in repairs/maint.?
|
|
|
|
|
|
Property insurance?
|
|
|
|
|
|
Annual increase in insurance?
|
|
|
|
Utilities per year?
|
|
|
|
Annual increase in utilities?
|
|
|
One-Time Property
Ownership/Carrying Costs by Year
|
|
|
|
Condo fees?
|
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
|
Annual increase in condo fees?
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses?
|
|
|
8
|
9
|
10
|
11
|
12
|
13
|
14
|
|
|
Annual increase in other expenses?
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
16
|
17
|
18
|
19
|
20
|
21
|
|
|
Allocation of Purchase Price to Land, Building
|
|
|
|
|
|
|
|
|
|
|
Commercial property?
Enter 1 Residential property?
Enter 2
|
|
|
|
These costs appear in the calculations below.
|
|
|
Purchase price of property?
|
|
|
|
|
|
Closing costs to perfect title?
|
|
|
|
|
|
Total cost (basis) of property
|
|
|
|
|
|
Percent of cost (basis) to land?
|
|
|
|
Basis of land
|
|
|
|
Basis of building
|
|
|
|
To
keep this worksheet straightforward, cost segregation, qualified improvement
property, and personal property depreciation are not considered.
|
|
