Analyze the Potential Profit or Loss of your Real Estate Investment

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Date Today:

2/25/2015

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Enter your numbers in the yellow background boxes only.
Some of the columns may show ###### when dealing with a high value property (over $1m.) Just divide your entries by 1,000, making the results easier to read.
Purchase Price:
Down Payment:
Interest Rate on Loan:
Term of Loan:
Improvement Ratio:
No. Yrs. of Depreciation:
Number of units and rent each
1 bed room
2
500
2 bedroom
3
700
3 bedroom
1
900
4 bedroom
0
0
Scheduled Annual Gross Income:
Vacancy/Collection losses:
(Annual Operating Expenses)
Property taxes :
Insurance:
Flood insurance
Management:
Repairs/Maintenance:
Electricity:
Gas:
Oil:
Water:
Trash Collection:
Advertising:
Telephone:
Other:
Other:
Other:
Annual Increase of Income:
Annual Increase of Expenses:
Annual Increase in Property Value:
Investor's Tax Bracket:
Capital Gain Tax Rate:
CGT Rate on Recaptured Depreciation
Immediate Capital Improvements:
Approx. Buying Costs:
Approx. Sales Costs:
Value of Property After Capital. Imp.

PURCHASE SUMMARY

LOAN

Price
Dn. Pymt.
Loan Amt.
Buy Costs
Cap Impr.
Val of Prop

Interest %
No. Yrs.
Mo. P & I
Yr. P & I

400,000
15,000
385,000
14,000
18,000
460,000

400,000
15,000
7.00 % p.a.
15 yrs.
80 % age of building to total property value
27.5 yrs. Straightline for residential. 39.5 years for commercial.
1000
2100
900
0

If single family home just

put 0s in fields as appropriate

48,000
6.00 %
--------3,500
600
0
10.00 % of income
12.00 % of income
90
0
0
1,100
600
150
0
0 Replace "Other"
0 with name of Other
0 Expenses
4.00% % p.a.
4.00% % p.a.
4.00% % p.a.
28.00% %
18.00% % This varies depending on the tax payer.
25.00% %
18,000
3.50% % of total
9.00% % of total
460,000 (Best estimate)

DEPRECIATION
7.00%
15
3,460
41,526

Land
Improvemen
No. Yrs.
Yr. Depr.

20%
80%
27.5
12,800

80,000
352,000

Yr.1

Yr. 2

Yr. 3

Yr. 4

Yr. 5

Yr. 6

Yr. 7

Yr. 8

Yr. 9

Yr. 10

ANNUAL OPERATING INCOME

Expected Gross Income
less Vacancy/Collection lo
6.00%
EFFECTIVE GROSS INCOME (EGI)

48,000
2,880
45,120

49,920
2,995
46,925

51,917
3,115
48,802

53,993
3,240
50,754

56,153
3,369
52,784

58,399
3,504
54,895

60,735
3,644
57,091

63,165
3,790
59,375

65,691
3,941
61,750

68,319
4,099
64,220

ANNUAL OPERATING EXPENSES

Property taxes :
Insurance:
Flood insurance
Management:
10.00%

3,500
600
0
4,512

3,640
624
0
4,692

3,786
649
0
4,880

3,937
675
0
5,075

4,095
702
0
5,278

4,258
730
0
5,490

4,429
759
0
5,709

4,606
790
0
5,937

4,790
821
0
6,175

4,982
854
0
6,422

Repairs/Maintenance:
12.00%
Electricity:
Gas:
Oil:
Water:
Trash Collection:
Advertising:
Telephone:
Other:
Other:
Other:
TOTAL OPERATING EXPENSES

5,414
90
0
0
1,100
600
150
0
0
0
0
15,966

5,631
94
0
0
1,144
624
156
0
0
0
0
16,605

5,856
97
0
0
1,190
649
162
0
0
0
0
17,269

6,090
101
0
0
1,237
675
169
0
0
0
0
17,960

6,334
105
0
0
1,287
702
175
0
0
0
0
18,678

6,587
109
0
0
1,338
730
182
0
0
0
0
19,426

6,851
114
0
0
1,392
759
190
0
0
0
0
20,203

7,125
118
0
0
1,448
790
197
0
0
0
0
21,011

7,410
123
0
0
1,505
821
205
0
0
0
0
21,851

7,706
128
0
0
1,566
854
213
0
0
0
0
22,725

NET OPERATING INCOME

29,154

30,320

31,532

32,794

34,106

35,470

36,889

38,364

39,899

41,495

7%

7%

7%

8%

8%

8%

9%

9%

9%

10%

29,154
41,526
-12,372

30,320
41,526
-11,206

31,532
41,526
-9,993

32,794
41,526
-8,732

34,106
41,526
-7,420

35,470
41,526
-6,056

36,889
41,526
-4,637

38,364
41,526
-3,162

39,899
41,526
-1,627

41,495
41,526
-31

39,899
15,216
12,800
11,882
3,327

41,495
13,314
12,800
15,380
4,306

CAP RATE Per Year (NOI/Initial Invest)

CASH FLOW (BEFORE TAXES)
Net Operating Income
-Yrly. P & I
CASH FLOW (BEFORE TAXES)

TAX BENEFIT
Net Operating Income
29,154
30,320
31,532
32,794
34,106
35,470
36,889
38,364
-Annual Interest
26,473
25,385
24,218
22,967
21,625
20,187
18,644
16,990
-Annual Depreciation
12,800
12,800
12,800
12,800
12,800
12,800
12,800
12,800
Taxable Income
-10,120
-7,865
-5,486
-2,973
-320
2,483
5,444
8,574
INCOME TAX Due
-2,833
-2,202
-1,536
-832
-90
695
1,524
2,401
Note that when the property loses money you get a reduction in your income tax for the loss. When it makes money you will pay tax on your profit.
If the tax due is negative, as often happens in first few years, you get a tax credit. This is subject to passive loss rules, see your tax advisor.

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

414,000
18,000
43,056
12,800
462,256

414,000
18,000
44,778
25,600
451,178

414,000
18,000
46,569
38,400
440,169

414,000
18,000
48,432
51,200
429,232

414,000
18,000
50,369
64,000
418,369

414,000
18,000
52,384
76,800
407,584

414,000
18,000
54,480
89,600
396,880

414,000
18,000
56,659
102,400
386,259

414,000
18,000
58,925
115,200
375,725

414,000
18,000
61,282
128,000
365,282

True CAPITAL GAIN

Sales Price
Non adjusted cost
True Gain or loss

478,400
475,056
3,344

497,536
476,778
20,758

517,437
478,569
38,868

538,135
480,432
57,703

559,660
482,369
77,291

582,047
484,384
97,663

605,329
486,480
118,849

629,542
488,659
140,883

654,723
490,925
163,798

680,912
493,282
187,630

CAPITAL GAIN for tax purposes

Sales Price
- Adjusted Cost Basis
CAPITAL GAIN (tax purposes)

478,400
462,256
16,144

497,536
451,178
46,358

517,437
440,169
77,268

538,135
429,232
108,903

559,660
418,369
141,291

582,047
407,584
174,463

605,329
396,880
208,449

629,542
386,259
243,283

654,723
375,725
278,998

680,912
365,282
315,630

LONG TERM CAPITAL GAIN TAX (must hold asset for more than 1 year)
Capital Gain for tax purposes
16,144
46,358
77,268
= Tax on Capital Gain
3,802
10,136
16,596

108,903
23,187

141,291
29,912

174,463
36,779

208,449
43,793

243,283
50,959

278,998
58,284

315,630
65,773

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
Cash invested by owner
Net cash to owner on sale (less cash inv)

478,400
43,056
369,947
65,397
3,802
61,595
47,000
14,595

497,536
44,778
353,806
98,951
10,136
88,815
47,000
41,815

517,437
46,569
336,499
134,369
16,596
117,773
47,000
70,773

538,135
559,660
582,047 605,329
629,542
654,723
48,432
50,369
52,384
54,480
56,659
58,925
317,940
298,039
276,700 253,818
229,283
202,973
171,763
211,252
252,962 297,031
343,600
392,825
23,187
29,912
36,779
43,793
50,959
58,284
148,576
181,339
216,183 253,238
292,641
334,542
47,000
47,000
47,000
47,000
47,000
47,000
101,576
134,339
169,183 206,238
245,641
287,542
(In later years one should allow for loss of interest on the cash one invested)
7,314
9,827
12,480
15,283
18,244
21,374
24,682
1,536
832
90
-695
-1,524
-2,401
-3,327

680,912
61,282
174,762
444,869
65,773
379,095
47,000
332,095

Net Operating Income less Interest for yr.

2,680
4,935
Income tax for the year
2,833
2,202
(if positive this is a tax credit)
NOI -Interest + Tax credit (or - tax paid) for
5,514
7,137
8,850
Cumulative after tax income (excd. Depr)
5,514
12,651
21,501
(This assumes you have other taxable income to set any tax credits against)

28,180
-4,306

10,659
32,161

12,570
44,730

14,588
59,318

If you hold till the end of the 10th yr then sell, you have a capital return on your investment, after tax:
and have also earned a total after tax income of:
Thus on an original cash investment of:
47,000
you have an approx. annualized return of
Prepared For:

16,720
76,038

332,095
140,240
33%

18,973
95,011

21,355
116,367

23,874
140,240

Prepared By:

Date:

2/25/2015

Property Address:
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.
This spreadsheet is copyright of Mortgage-Investments.com. You are invited to forward this spreadsheet to friends and collegues fully intact.
Mortgage-Investments.com
Click our link for more free stuff, including a library of useful real estate and mortgage forms and financial calculators with a tutorial
on how to do creative financial calculations.

Investment performance
Return on equity includes appreciation, principal
reduction and tax benefit.

50,000
40,000
Dollars30,000

NOI

20,000

Interest paid

10,000
0
1

years

10