I am new to real estate investing... Although, I have had a condo for 4 years I have been renting out and making a pretty decent return. purchased for $97k, now they are selling at +-$150k and I only owe $68k on the property. Cash flows (after debt service) is about $250 a month.
I just purchased another condo similar to it that I will rent out furnished (these are highly desirable in my area). I will see how that works.
Okay, on with the subject... I am interested in looking at duplexes to purchase. I have created an excel spreadsheet that shows a 5 year holding analysis. From what I have been reading, they say to project 5 years out. So I am attaching this spreadsheet to see if somebody can take a look and see if it looks accurate. I want to make sure I have the correct formulas, etc before I start to use it. I have an example in there for a duplex that is for sale in my area I am looking at. The cash flow looks great, but for some reason after 5 years, if I were to sell it, it shows a negative ROI.
So, if somebody doesn't mind checking this thing out, it would be greatly appreciated. Anybody can feel free to use it, of course.
Thank you in advance!
Its a lot of info and its well put together but I think all you did was use the initial purchase price as your initial investment as opposed to just the down payment. ROI = gain from investment - initial investment divided by initial investment. Your investment was your down payment not the whole purchase price.
Okay, I see... so if I change that, it shows an 80% ROI but still shows a LOSS after holding the property for 5 years. (I'm assuming because of the interest paid on the debt).... Still seems a bit odd though... Can't figure out if it's because I'm doing something wrong in the spreadsheet or that's just the way it is lol ...
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