Return on Investment and equity calculations
I am starting out with rental properties and want a little feedback regrding my evaluation method. I only buy single family homes in my county. I devleoped a calculator in excel. I attached the spreadsheet as an image. If the calculator/spreadsheet is not available, send an e-mail to [email protected] to get a copy. I input the purchase price, expected appreciation rate, loan amount, loan term, cash invested, mortgage payment, HOA fees, insurance costs, management fees, taxes, effective tax rate, comparable sold prices/sq. ft. of recently sold properties, and comparable rental price information. The number calculated based on these inputs are estimated property value, estimated monthly rent, monthly maintenance reserve expense, total monthly expense, pre-tax profit, after-tax profit, cash on cash return, instant equity, and 10 year projected equity gain.
Any constructive feedback is appreciated, as I want to make sure I 'get it right.'
Mark