Long term rental deal analyzer spreadsheet

[Jose Rodriguez]

Sharing My Long-Term Rental Deal Analyzer Spreadsheet

I've been using a deal analyzer spreadsheet for evaluating long-term rental purchases for years now. Over time I've refined it, but the core question it answers has stayed the same: what's the maximum purchase price where the property still pays for itself? It has options for LOC and Long term financing to allow minimal use of cash.

The approach is: plug in rent, financing terms, taxes, and insurance, and the spreadsheet calculates the price ceiling where cash flow hits zero. At that number, the property fully covers its own mortgage, taxes, and insurance with no out-of-pocket carry. You still get the benefit of depreciation and equity increase over time at that point. Note: it doesn't include a section for Project management so discount the rent for that in case you're paying a management company. 

I've found this to be a fast and effective filter when screening deals. 

It's a GitHub repo so you can download it, adjust parameters and values to your own situation. Nothing fancy, just a practical tool I've used over the years. on my own portfolio.

Link: https://github.com/jsrd12-apm/rental-calc

Happy to answer questions or hear how others approach their deal analysis. 

[Joe Villeneuve]

I have the same one, except mine maps out the area of comps which then sets the sale price for the property in quetsion.  It actually analyzes markets, not just properties since properties are just pieces of a market and the market dictates the values.

On your's, the biggest problem I see is your let zero CF be your limit.  That's a bad idea.  You should always set a specific minimum CF (not zero) and treat it as a cost that can't be changed.