I replicated the rental property calculator using a spreadsheet. I get the same results given the same inputs :)
Something I noticed is that the Bigger Pockets calculator adds CapEx to the NOI calculation. But when understanding the formula (Investopedia), what I learned was that you don't include CapEx as part of the expenses you subtract from the total revenue. Does anyone know the reasoning behind the discrepancy?
I'm guessing Bigger Pockets, in general, takes a more practical approach to things. So, CapEx is still money coming out of revenues (saved), and you can't count on it. Whereas the Investopedia approach is more academic?
Capex is a reserve which need to be considered to be on the safer side. It does not matter how you categorize but it has be deducted as an expense.
In my experience, it’s often better to rely on your own Excel sheet or use a consistent online calculator. There are a few good ones out there—like the ones on BiggerPockets, Baselane, or RollyTally. Having a standardized approach really helps cut through the noise.
Capex is a reserve which need to be considered to be on the safer side. It does not matter how you categorize but it has be deducted as an expense.
In my experience, it’s often better to rely on your own Excel sheet or use a consistent online calculator. There are a few good ones out there—like the ones on BiggerPockets, Baselane, or RollyTally. Having a standardized approach really helps cut through the noise.
Yes thank you ! I am working on my own excel sheet so that I can really understand how to analyze.