A B C D E F G H I J K L M N

1 Amberwood Rd
2
3 ASSUMPTIONS
4 Purchase Price 150000 Financing costs, disregard
5 Closing Costs 0.012 0.03984 =775+80+8.5+40+400
6 Interest Rate - 1st Mortgage 0.04 0.03678 =I5+0.01*C28
7 Annual Price Appreciation 0.05 0.03625 =421+1099+605
8 Initial Rent per Bedroom 337.5 =H5-H7 =I7-I5
9 Annual Rent Increase 0.03 =H8*C28
10 Management Fee (% of Rents) 0
11 Marg. Tax Bracket (Fed + CA) 0.4
12 Capital Gains Rate (Fed + CA) 0.25
13 # of Bedrooms 4
14 Homeowners insurance (ann.) 646
15 Prop. Tx (% of appraised $) 0.012
16 Water, Sewer & Garbage (mo.) 74.33
17 Initial Improvement Project 0
18 Normal maintenance (ann.) 2000
19 Depreciation : Tax Life = 27.5 years
20 Depreciation : Building = 0.75 of Total Value
21
22 PURCHASE ANALYSIS
23 Purchase Price =C4
24 Closing Costs =C5 =C23*$B$24
25 Total Cost =C23+C24
26
27
28 Mortgage 0.75 =C4*B28
29 Equity =1-B28 =C4-C28
30
31 FINANCING ANALYSIS After Year Loan Balance Pay Down TOTAL PD
32 Interest Rate =C6 1 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E32*12)))/($C$6/12) =$C$28-$G$32 =H32
33 Monthly Payment =PMT(C6/12,360,C28,0,0) 2 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E33*12)))/($C$6/12) =G32-G33 =I32+H33
34 3 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E34*12)))/($C$6/12) =G33-G34 =I33+H34
35 4 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E35*12)))/($C$6/12) =G34-G35 =I34+H35
36 5 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E36*12)))/($C$6/12) =G35-G36 =I35+H36
37 6 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E37*12)))/($C$6/12) =G36-G37 =I36+H37
38 7 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E38*12)))/($C$6/12) =G37-G38 =I37+H38
39 8 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E39*12)))/($C$6/12) =G38-G39 =I38+H39
40 9 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E40*12)))/($C$6/12) =G39-G40 =I39+H40
41 10 =(-$C$33)*(1-(1+($C$6/12))^-(360-(E41*12)))/($C$6/12) =G40-G41 =I40+H41
42
43
44
45
46 FIRST YEAR OPERATING PROJECTION (this is operating.. Doesn't take into acct. fix up)
47 Income/ Expense Baed on Monthly Annually
48
49 Rent amount per bedroom * # of bedrooms =$C$8*$C$13 =$G$49*12
50 Management Fee =-G49*$C$10 =G50*12
51 TOTAL RENTAL INCOME =G49+G50 =H49+H50
52
53 Insurance =$H$53/12 =$C$14
54 Property Taxes =C15 per year =$H$54/12 =$C$15*C4
55 Property Maintenance =H55/12 =$C$18
56 Water, Sewer, Garbage =$C$16 =G56*12
57 TOTAL OPERATING EXPENSE =-SUM(G53:G56) =G57*12
58
59 NET OPERATING INCOME =G51+G57 =H51+H57
60
61 Cap Rate (NOI / (Purchase Price + Initial Fix Up)) =H59/(C4+C17)
62
63 Mortgage Payment =$C$33 =G63*12
64 CASH FLOW (before taxes) =G59+G63 =H59+H63
65
66 Mortgage Paydown above data from financing analysis =$H$32
67 Depreciation =-(1/$C$19)*($C$20*$C$23)
68 TAXABLE INCOME =H64+H66+H67
69
70 Pre-Tax Cash Flow =H64
71 Tax Savings @ =$C$11 =-H68*F71
72 AFTER TAX CASH FLOW =H72/12 =H71+H70
73
74
75 TEN YEAR OPERATING PROJECTION
76 Income/ Expense Escalator Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
77
78 Rent =$C$9 =$H$49 =D78*(1+$C$78) =E78*(1+$C$78) =F78*(1+$C$78) =G78*(1+$C$78) =H78*(1+$C$78) =I78*(1+$C$78) =J78*(1+$C$78) =K78*(1+$C$78) =L78*(1+$C$78)
79 Management Fee =-D78*$C$10 =-E78*$C$10 =-F78*$C$10 =-G78*$C$10 =-H78*$C$10 =-I78*$C$10 =-J78*$C$10 =-K78*$C$10 =-L78*$C$10 =-M78*$C$10
80 TOTAL RENTAL INCOME =D78+D79 =E78+E79 =F78+F79 =G78+G79 =H78+H79 =I78+I79 =J78+J79 =K78+K79 =L78+L79 =M78+M79
81
82 Insurance 0.03 =$H$53 =D82*(1+$C$82) =E82*(1+$C$82) =F82*(1+$C$82) =G82*(1+$C$82) =H82*(1+$C$82) =I82*(1+$C$82) =J82*(1+$C$82) =K82*(1+$C$82) =L82*(1+$C$82)
83 Property Taxes 0.02 =$H$54 =D83*(1+$C83) =E83*(1+$C83) =F83*(1+$C83) =G83*(1+$C83) =H83*(1+$C83) =I83*(1+$C83) =J83*(1+$C83) =K83*(1+$C83) =L83*(1+$C83)
84 Property Maintenance 0.05 =$H$55 =D84*(1+$C84) =E84*(1+$C84) =F84*(1+$C84) =G84*(1+$C84) =H84*(1+$C84) =I84*(1+$C84) =J84*(1+$C84) =K84*(1+$C84) =L84*(1+$C84)
85 Water, Sewer, Garbage 0.05 =$H$56 =D85*(1+$C85) =E85*(1+$C85) =F85*(1+$C85) =G85*(1+$C85) =H85*(1+$C85) =I85*(1+$C85) =J85*(1+$C85) =K85*(1+$C85) =L85*(1+$C85)
86 TOTAL OPERATING EXPENSE =-SUM(D82:D85) =-SUM(E82:E85) =-SUM(F82:F85) =-SUM(G82:G85) =-SUM(H82:H85) =-SUM(I82:I85) =-SUM(J82:J85) =-SUM(K82:K85) =-SUM(L82:L85) =-SUM(M82:M85)
87
88 NET OPERATING INCOME =$D$80+$D$86 =E80+E86 =F80+F86 =G80+G86 =H80+H86 =I80+I86 =J80+J86 =K80+K86 =L80+L86 =M80+M86
89
90 Mortgage Payment =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12 =$C$33*12
91 CASH FLOW =D88+D90 =E88+E90 =F88+F90 =G88+G90 =H88+H90 =I88+I90 =J88+J90 =K88+K90 =L88+L90 =M88+M90
92
93 Mortgage Paydown =$H32 =$H33 =$H34 =$H35 =$H36 =$H37 =$H38 =$H39 =$H40 =$H41
94 Depreciation =-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23) =-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
=-(1/$C$19)*($C$20*$C$23)
95 Taxable Income =D91+D93+D94 =E91+E93+E94 =F91+F93+F94 =G91+G93+G94 =H91+H93+H94 =I91+I93+I94 =J91+J93+J94 =K91+K93+K94 =L91+L93+L94 =M91+M93+M94
96
97 Cash Flow =D91 =E91 =F91 =G91 =H91 =I91 =J91 =K91 =L91 =M91
98 Tax Savings @ =$C$11 =-D95*$C98 =-E95*$C98 =-F95*$C98 =-G95*$C98 =-H95*$C98 =-I95*$C98 =-J95*$C98 =-K95*$C98 =-L95*$C98 =-M95*$C98
99 AFTER TAX CASH FLOW =D98+D97 =E98+E97 =F98+F97 =G98+G97 =H98+H97 =I98+I97 =J98+J97 =K98+K97 =L98+L97 =M98+M97
100
101
102
SALES ANALYSIS AFTER 10 YEARS
103 Purchase Price =C4
104 Appreciation @ =C7 =($D$103*(1+$C$104)^10)-$D$103
105 Target Sale Price =D103+D104
106
107 Estimated Closing Costs 0.01 =C107*D105
108 Real Estate Commission 0.05 =C108*D105
109 Gross Procedes of Sale =D105-D107-D108
110
111 Accumulated Depreciation 10ys =-10*$D$94
 A B C D E F G H I J K L M N
112 Cost Basis (Purch Cost + Imp. - Acc. Dep.) =$C$4+$C$17-D111
113
114 Loan Balance-end of 10yrs =$G$41
115 Net Procedes of Sale (before taxes) =D109-D114
116
117 Act. Cap Gain (Gross Proc. - Tot. Cost Basis) =$D$109-$D$112
118 Capital Gains Tax @ =$C$12 =D117*C118
119
120 RATE OF RETURN ANALYSIS AFTER 10 YEARS
121 Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
122 Purchase Price + Closing Costs =-$C$25
123 Initial Improvement Project =-C17
124 Traditional Mortgage =$C$28
125 Cash Flow =D91 =E91 =F91 =G91 =H91 =I91 =J91 =K91 =L91 =M91
126 Net Proceeds of Sale =$D$115
127 Cash Flow (before tax) =SUM(D122:D126) =SUM(E122:E126) =SUM(F122:F126) =SUM(G122:G126) =SUM(H122:H126) =SUM(I122:I126) =SUM(J122:J126) =SUM(K122:K126) =SUM(L122:L126) =SUM(M122:M126) =SUM(N122:N126)
128 Internal Rate of Return (before tax) =IRR(D127:N127,22%)
129
130 Tax Savings =D98 =E98 =F98 =G98 =H98 =I98 =J98 =K98 =L98 =M98
131 Capital Gains Tax Due =-$D$118
132 Cash Flow (after tax) =D127+SUM(D130:D131) =E127+SUM(E130:E131) =F127+SUM(F130:F131) =G127+SUM(G130:G131) =H127+SUM(H130:H131) =I127+SUM(I130:I131) =J127+SUM(J130:J131) =K127+SUM(K130:K131) =L127+SUM(L130:L131) =M127+SUM(M130:M131)=N127+SUM(N130:N131)
133 Internal Rate of Return (after tax) =IRR(D132:N132,22%)