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Updated about 1 month ago on . Most recent reply

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Cody Murphy
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How does BP rental property analysis tool calculate "Profit if Sold"?

Cody Murphy
Posted

I am testing out the BP rental property analysis tool. I cannot for the life of me figure out how the "profit if sold" line is calculated (picture below). I've tried to get to the same number a million ways, but to no avail. Does anyone know how this is being calculated? 

  • Cody Murphy
  • Most Popular Reply

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    Clayton Silva
    • Lender
    • California
    316
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    Clayton Silva
    • Lender
    • California
    Replied
    Quote from @Cody Murphy:

    Let's look at Year 5 for example. Sale price of $563k would mean closing costs of $42k (about 7.5%). After subtracting closing costs and paying off the remaining loan balance, I get a profit of: 563,000 - 42,000 - 397,000 = $124,000. However the calculator is showing only $12k in profit. What happened to the missing $112,000 ??


     It has something to do with negative rent.  I am not sure what you put for the lease amount but that is the negative net rent for those 5 years.  So Rent - management fees - capex - repairs and maintenance - PITIA for 12 months for 5 years is where that 100k went.

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