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REAL ESTATE Property Analysis Spreadsheet

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JScott

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In the interest of sharing, here is the spreadsheet that I use to evaluate property in case anyone that is new to this is looking for one (and I've edited this post to include an older Excel format for those who don't have Office 2007):

http://jason.netrino.com/PropEval/PropertyEval.xls (in Office Excel 97-2003 format)

http://jason.netrino.com/PropEval/PropertyEval.xlsx (in Office Excel 2007 format)

Inputs are in red...outputs in black...

Disclaimer: While I've been analyzing properties for several months now, I haven't yet bought any multi-unit properties, so I'm certainly no expert. Additionally, I've noticed that different people calculate various ratios differently (for example, calculating cash-on-cash with the closing costs figured into the total investment vs. the closing costs not figured into the total investment), so verify that the calculations match your definitions.
 

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ProInvestor

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I can't open because it uses xlsx. If you run Openoffice, StarOffice, Office 95, Office2000 or OfficeXP you cannot open the software. Right now only about 1 in 4 computers run Office07 (while 100% of computers can open a 'normal'/old office file (such as xls)).

JScott could you please save into xls format and re-upload the file?

Also check out http://jaffasoft.com - it has a rather good cashflow calculator.

Rgds.
ProInvestor
 

Bilgefisher

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Jscott,
I am unable to see the file as well. I would love to see yours and others excel sheets on how they evaluate properties. Since I just started, my excel sheet is haphazard at best.
 

Diane Kennedy

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JScott

I just want to thank you for the generosity you've shown by giving access to one of the tricks of the trade that you use.

Who said the rich & successful were all greedy?

I think the viewing problem is because you created in Vista. You might need to save in an older format for non-Vistas to view. You should have that option in Excel when you save.
 

JScott

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I guess I'm the only one here who works for Microsoft, huh? :smxB:

Okay, here's the file in Office 97-2003 format (and I've also updated the original post above):

http://jason.netrino.com/PropEval.xls

And for those of you who might receive other Office 2007 files at some point, here's a link to a Microsoft "compatibility pack" which will allow you to open Office 2007 files in older versions of Windows/Office:

http://www.microsoft.com/downloads/...70-3ae9-4aee-8f43-c6bb74cd1466&displayLang=en

Okay, have at it...
 

yveskleinsky

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Holy crap this is awesome!!!!!!

++ rep!

Thank you SO much! You just made (and saved me) a lot of money!

:banana::banana::banana:
 

JScott

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If you change the red numbers, some of the black ones will change to... :)

The red numbers are all the variables that contribute to the financial analysis of a deal (okay, not all...but the major ones that can be evaluated by spreadsheet), and the black numbers are the results...

If this spreadsheet makes no sense whatsoever, I would suggest taking a step back and reading a book on real estate investing.

"The Complete Guide to Investing in Rental Properties" by Steve Berges is a reasonable place to start if you want to understand basic financial modeling of rental investment property.
 

lee_mre

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If this spreadsheet makes no sense whatsoever, I would suggest taking a step back and reading a book on real estate investing.

"The Complete Guide to Investing in Rental Properties" by Steve Berges is a reasonable place to start if you want to understand basic financial modeling of rental investment property.

Thanks for the tip...I'll pick up the book http://www.thefastlanetomillions.com/images/smilies/thankyousign.gif
:thankyousign:
 

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Wolfgang5150

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Does anyone have a spreadsheet they use for renatl properties, once you own them and run them? I have set up my own; which I use for a few years now. But it's very basic; monthy rents (by tenant); monthly expenses etc. mine doesn't calculate anything - but I need to work on that.
Just curious what the bigger property owners use, and/or created.
Thanks in advance.
Kevin S.
 

nomadjanet

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Jason, trying to use the spreadsheet; finding that some of the calculations do not come through:
equity acrued
total return
total ROI
I am using excell 97 so perhaps that is the problem?
what am I doing wrong?
Janet
 

JScott

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Jason, trying to use the spreadsheet; finding that some of the calculations do not come through:
equity acrued
total return
total ROI
I am using excell 97 so perhaps that is the problem?
what am I doing wrong?
Janet

Ah...yes...

The calculation for "Equity Accrued" uses a non-standard Excel formula (CUMPRINC). Sometimes this function doesn't come installed as part of Excel, but you should be able to easily get it installed.

Go to the Help menu in Excel, and click on "Microsoft Excel Help". From there, enter "CUMPRINC" into the search box. When the help for the CUMPRINC function comes up, it should say at the top:

"If this function is not available, and returns the #NAME error, install and load the Analysis ToolPak add-In."

To get instructions on how to install this, click on the "How?" link right below those sentence, and follow the instructions. That should work for you. If it doesn't, try restarting Excel afterwards.
 

bflbob

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nice spreadsheet thanks for sharing.

i've noticed you said you haven't purchased any multi-units, so i'm curious as to what the experts on this board have to say. maybe SteveO can chime in ;]

Similar to one Steve uses called the Value Play.
I made my own version of it and use it on every property I look at.

Unfortunately, it is too large to upload here.
Help, MJ???
 

nomadjanet

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Similar to one Steve uses called the Value Play.
I made my own version of it and use it on every property I look at.

Unfortunately, it is too large to upload here.
Help, MJ???

Try zipping it and sending that is what I did with the business benchmarks file as it was also to large.

Janet
 

SteveO

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I do have office 2007 but cannot open the files. I have tried multiple times.
 

SteveO

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I was able to open it.

The spreadsheet looks good in general but there seems to be one major flaw.

Why isn't the appreciation calculated off of the income? You can't assign an appreciation percentage and expect it to be accurate. You can assign expected income and expense percentages and the value should be picked up from there.

I have not passed these types of tools out to others in the past. As some people know that have seen my presentations, I like to hand out a hard copy and let the serious people figure out how to replicate it. It is so much more important to understand these figures than to be able to see the results thrown back at them.

Anyone that takes some actual numbers and plays with them in a spreadsheet like this will be in awe of the potential returns that are available.
 

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SteveO

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Similar to one Steve uses called the Value Play.
I made my own version of it and use it on every property I look at.

Congrats Bob!!!

Steve Berges has a spreadsheet that he sells called the "Value Play". I have a spreadsheet that is similar to his and to this one that I developed years ago. My use of the term is "Value Added" or "Value Add" which is common in the industry.
 

bflbob

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I have not passed these types of tools out to others in the past. As some people know that have seen my presentations, I like to hand out a hard copy and let the serious people figure out how to replicate it. It is so much more important to understand these figures than to be able to see the results thrown back at them.

Anyone that takes some actual numbers and plays with them in a spreadsheet like this will be in awe of the potential returns that are available.

Good point Steve.
I'll delete my zip file and add a pdf instead.
 

JScott

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I was able to open it.

The spreadsheet looks good in general but there seems to be one major flaw.

Why isn't the appreciation calculated off of the income? You can't assign an appreciation percentage and expect it to be accurate. You can assign expected income and expense percentages and the value should be picked up from there.

It's an excellent point, and I hadn't really considered how to automatically determine appreciation (by maintaining cap rate and calculating price appreciation based on new NOI) until I read Berges' book a couple months ago.

In fact, until I read Berges' book, I always planned to employ a pure buy-and-hold strategy, and as a risk mitigation technique, I've always assumed no appreciation in my buy-and-hold analysis (if the property could provide good return without appreciation, then any appreciation would be gravy).

I've now "seen the light" and plan to employ Berges' techniques for finding properties that have upside value, and so now the appreciation component of the spreadsheet becomes that much more important.

Thanks Steve for the recommendation on that book...using the "value play" principles will no-doubt contribute a tremendous amount my consideration and ultimate ROI on properties.

By the way, I'm reading the Vollucci book now, and it has really opened my eyes on the subject of "where to buy." I had never considered buying property in a location that I didn't know intimately (every neighborhood, street, etc), but now realize that by analyzing demographic and economic trends, you have the ability to play off macro-trends to the point where understanding the details of locations is still important, but not the most important thing.

For the first time, I'm actually considering buying property outside of wherever I live (maybe not the first property or two, but eventually).

Another great recommendation, thanks! I now completely understand why you claim that a foundation for apartment investing can be had from just these two books...

I have not passed these types of tools out to others in the past. As some people know that have seen my presentations, I like to hand out a hard copy and let the serious people figure out how to replicate it. It is so much more important to understand these figures than to be able to see the results thrown back at them.
In general, I agree. Which is why I will be taking it down soon...

I just wanted to give the core group of people who contribute here the benefit of having it, and hope that they choose to ask questions about anything they don't understand, as opposed to using it as a black-box tool...
 

SteveO

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In general, I agree. Which is why I will be taking it down soon...

Jeez, I am going to be disliked for this.

I am not suggesting that it be taken down. But people that like this tool should really dig into it to understand how to get ALL of these calculations. You certainly understand them at this point. Look at all that you gained from this exercise.
 

Bilgefisher

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Jeez, I am going to be disliked for this.

I am not suggesting that it be taken down. But people that like this tool should really dig into it to understand how to get ALL of these calculations. You certainly understand them at this point. Look at all that you gained from this exercise.

Well from the newbie perspective, I think you make a very valid point. If I truly want to understand the numbers, then making my own will help that greatly.
 

JScott

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I am not suggesting that it be taken down. But people that like this tool should really dig into it to understand how to get ALL of these calculations. You certainly understand them at this point. Look at all that you gained from this exercise.

My original plan was to take it down after the core group of folks that have been contributing here have had the opportunity to download it. After that, I was going to offer to send it to people if they contacted me (I honestly wasn't completely comfortable posting it, if for no other reason than because if people used it and made stupid decisions, i didn't want to feel responsible).

I'll probably still do that (have people contact me if they want it), and selectively give it out to those folks who request it and who seem to contribute back to this forum as well...win-win...
 

yveskleinsky

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I'm curious as to how this spreadsheet would differ for multifamilies. What am I missing here? ...I love this spreadsheet. I have been running different multifamilies through it to see what happens. I said it before, and I'll say it again, thank you for posting what is working- this spreadsheet is amazing!
 

JScott

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I'm curious as to how this spreadsheet would differ for multifamilies. What am I missing here? ...I love this spreadsheet. I have been running different multifamilies through it to see what happens. I said it before, and I'll say it again, thank you for posting what is working- this spreadsheet is amazing!

When it comes to multi's, the math is exactly the same, so the spreadsheet is exactly the same...

The things that change are the inputs...for example:

- Interest rate likely to go up
- Downpayment likely to go up
- PM fees likely to go up or down (depending on if you had them before)
- Additional fees for professional services (lawyer, accountant, etc) if you need one on retainer
- Taxes may be different due to amount of cash-flow
- Etc...
 

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