rental real estate spreadsheet predictions
                           

                                    REAL ESTATE INVESTMENT ANALYSIS  

 (Page 1 of 6)  
           
           
             
This spreadsheet is designed to allow you to forecast the income, expenses, NOI and after tax returns of an income property held for 10 years.  
It will also calculate estimated profits when you sell, both before and after tax.  
Of course, the old theory applies, garbage in, garbage out. And it also must be understood that it
is truly impossible to predict the future path of inflation, rent increases and property prices.
 
Enter numbers in the YELLOW fields only. Tab from field to field but allow a few seconds each time for the numbers to update.  		  
   
  Purchase Price:      
  Down Payment:      
  Interest Rate on Loan: % p.a.    
  Term of Loan:   yrs.    
  Improvement Ratio:   % %age of building to total property value  
  No. Yrs. of Depreciation: yrs. Straightline for residential. 39.5 years for commercial.
  Scheduled Annual Gross Income:    
  Vacancy/Collection losses: %    
  (Annual Operating Expenses) ---------    
  Property taxes :      
  Insurance:      
  Electricity:      
  Gas:      
  Oil:      
  Water:      
  Trash:      
  Management:   % of income    
  Repairs/Maintenance: % of income    
  Advertising:      
  Telephone:      
  Other:      
  Other:      
  Other:      
  Annual Increase of Income: % p.a.    
  Annual Increase of Expenses: % p.a.    
  Annual Appreciation Rate: % p.a.    
  Investor's Tax Bracket: %    
  Capital Gain Tax Rate: % This varies depending on the tax payer.  
  CGT Rate on Recaptured Depreciation %    
  Expected Capital Improvements:    
  Approx. Buying Costs: % of total    
  Approx. Sales Costs:   % of total    
   
  RESULTS   (Page 2 of 6)  
       
ACQUISITION DATA   LOAN DATA   DEPRECIATION    
       
Price   Interest %   Land    
Dn. Pymt.   No. Yrs.   Improvement    
Loan Amt.   Mo. P & I   No. Yrs.    
Buy Costs   Yr. P & I   Yr. Depr.    
Cap Impr.        
       
       
ANNUAL OPERATING INCOME Yr.1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
       
Increase in income    
Expected Gross Income  
less Vacancy/Collection losses  
EFFECTIVE GROSS INCOME  
(EGI)      
     
ANNUAL OPERATING EXPENSES Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
(Increase in expenses)    
Property Taxes    
Insurance    
Electricity    
Gas    
Oil    
Water    
Trash    
Management  
Repairs/Maintenance  
Advertising    
Telephone    
Other    
Other    
Other    
TOTAL OPERATING EXPENSES  
Op. Expenses as %age of income  
     
     
NET OPERATING INCOME  
(NOI) excluding financing costs    
     
     
CASH FLOW (BEFORE TAXES) Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Net Operating Income  
Yrly. P & I    
CASH FLOW (BEFORE TAXES)  
     
     
TAX BENEFIT   Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Net Operating Income  
-Annual Interest    
Annual Depreciation  
Taxable Income    
Investor's Tax Bracket  
TAX BENEFIT    
     
     
     
MORTGAGE PRINCIPAL REDUCTION Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Start of Yr. Balance    
End of Yr. Balance    
TOTAL PRINCIPAL REDUCTION  
     
     
     
PROPERTY APPRECIATION Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
(Increase)    
Start of Year Value    
End of Year Value    
TOTAL ANNUAL APPRECIATION  
     
    FINANCIAL ANALYSIS   (Page 4 of 6)  
     
RETURN ON INITIAL EQUITY(Assume Initial Equity = Down Payment + Capital Improvement)    
     
  Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Cash Flow (Before Taxes)  
Tax Benefit    
Debt Reduction    
Appreciation    
$ RETURN ON INITIAL EQUITY  
     
INITIAL EQUITY:      
Down Payment    
Capital Improvement    
TOTAL INITIAL EQUITY  
     
% RETURN ON INITIAL EQUITY  
     
     
RETURN ON TOTAL EQUITY (Assume Total Equity = Start of Year Value - Start of Year Loan Balance)    
     
  Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Cash Flow (Before Taxes)  
Tax Benefit    
Debt Reduction    
Appreciation    
$ RETURN ON TOTAL EQUITY  
     
TOTAL EQUITY:      
Beginning of Year Value inc. Cap. Imp.  
Begining of Year Balance  
TOTAL EQUITY    
     
% RETURN ON TOTAL EQUITY  
     
    ESTIMATED SALE PROCEEDS (AFTER EXPENSES & TAXES)    
     
     
  Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
ADJUSTED COST BASIS    
Original Basis    
+ Capital Improvements`  
+ Sales Costs  
- Accum. Depreciation  
= ADJUSTED COST BASIS  
     
True CAPITAL GAIN      
Sales Price    
Non adjusted cost    
True Gain or loss    
     
CAPITAL GAIN for tax purposes    
Sales Price    
- Adjusted Cost Basis  
CAPITAL GAIN (tax purposes)  
     
CAPITAL GAIN TAX      
Capital Gain for tax purposes  
= Tax on Capital Gain  
         
EST. NET SALE PROCEEDS (after tax)    
Sales Price    
- Sales Costs    
- Ending Loan Balance  
= Proceeds Before Taxes  
- Capital Gain Tax    
= EST NET SALE PROCEEDS A/T  
     
You must hold the property for a year and a day to qualify for long term capital gains tax treatment.    
     DEBT SERVICE COVERAGE RATIO (DSC)    
     
    Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10  
     
Net Operating Income  
- Debt Service (Yr. P & I)  
DSC    
     
        (Page 6 of 6)  
     
This report is based on certain assumptions. The projections are estimates only  
Anyone using or relying on this report is advised to seek competent legal, financial, and/or tax advice.