Investment Property Calculator
Property Information: |
Financing the Purchase: |
Annual Expenses: |
Analysis of Operating and Investment Results: |
Loan Balance by Year |
The cash amount out of pocket required for the purchase of this property.
The amount of interest the investor pays annually to borrow money from the lender. Rates and programs can vary, check with lender for more information.
The approximate value of the land that the property sits on. Usually available on the tax records in the county the property resides. You can not deprecate land value.
Anything that you have that is used for the investment property, such as washer/dryer, range, refrigerator lawn equipment, fixtures and other.
The rate annually you can depreciate on the personal property.
Recovery period for five-year personal property.
| Year | Percentage |
|---|---|
| 1 | 20% |
| 3 | 14.20% |
| 5 | 11.52% |
| 2 | 32% |
| 4 | 11.52% |
| 6 | 5.76% |
The amount the property is appreciating on an annual basis. Appreciation occurs on entire value of the property.
The rate of return used to calculate the net present value of cash flows.
P=principal, I=interest
Total amount you can depreciate annually on personal property and building value.
The amount of income available after vacancy.
Percentage of the “Gross Operating Income” paid for managing the property. This expense is in addition to any other expenses entered in this section.
The total annual expenses including real estate tax, repairs, management fees, insurance, utilities, supplies, and other miscellaneous expenses.
It's the percentage amount- based on the income 23 - 30% is considered average.
Total annual amount of expenses.
What's left after expenses, principal payment and interest.
Your payment to lender including principal and interest.
The ratio for which the properties annual income exceeds or cover the annual mortgage payment. Also known as the DSCR which is debt service cover ratio.
Cash flow before tax + principal reduction + taxes saved/paid divided by cash invested.
Net operating income divided by price, capitalization rate, rate of return. Over 10% is considered an excellent rate.
Cash flow before tax % cash invested.