In order to see the forumlas you will need to create a google docs account. Then, open this document. Do a "File -> Create a Copy" to make a copy into your own account. Now, you should be able to double click any of the cells in the outputs area and see the formula.
No guarantees at all. Its completely wrong and produces bogus results. If you lose a ton of money its not my fault.
Just use my Simple Property Analysis Google docs spreadsheet. Either save it (File -> Export -> .xls) to save it as an Excel sheet, or create a google docs account and make a copy (File -> Create a copy...).
Here is what you do. You can use cap rates on single family homes and up. here is a simple analysis. Let's assume you have a SFH which will rent in your area for $1500. You multiply x 12=$18,000 Gross Income. You assume 35% expenses. Leaving you with a NOI (net operating income of $11,700. You now divide the NOI by the sale price let say is $125,000. You get a cap rate of .09. We are looking for cap rates of 10 and higher. You especially use this when no comps are readily available within normal parameters. You are buying based on an income approach as opposed to comps which are more for retail buyers. As investors we buy at wholesale or below. This formula will never let you down for quick analysis. 10 or over deserves a serious look. Below 10 pass and move on.
Yes, that spreadsheet is just a very simple estimate. I have a more complex one that includes the closing costs and money costs. I'll try to get that up on google docs soon.
I don't have Excel, so can't test with that. I use Open Office. What error are you seeing?
That's the "2% rule". That only works for a narrow range of rents, about $500/unit, depending on the exact terms. At lower rents, you need to be higher than 2%. With higher rents, like $1100, you can be lower than 2% and still account for all your expenses and make the $100/door/month.
Did you ever get the "advanced" spreadsheet up and running yet? I'd be grateful to have that handy. I mostly use my HP12C but it's always nice to check my figures against themselves.
I'm developing a program that might be useful to you. It's not entirely completed yet, but you can download a pre-release from the second URL in my signature.
I'm also looking for input regarding additional features. Feel free to PM me.
In order to see the forumlas you will need to create a google docs account. Then, open this document. Do a "File -> Create a Copy" to make a copy into your own account. Now, you should be able to double click any of the cells in the outputs area and see the formula.
No guarantees at all. Its completely wrong and produces bogus results. If you lose a ton of money its not my fault.