Best way to evaluate current property's financial performance?

23 Replies

I would like to put together something to calculate how well my current property is performing financially. Cap rate, cash-flow, cash on cash return, etc.

And then I would like for you all to comment and provide your thoughts on if it is doing well or not.

What is the best approach to do this? Just put everything in excel? 

@Lance Lvovsky  . She knows what she's talking about :)!

Are you trying to evaluate a deal or compile a quarterly financial statement for your existing properties. 

Brianna- Do the calculators provide you with a spreadsheet after you run the numbers? I'm not a pro yet, so I wouldn't know.

@John E.  It does not put it in a spreadsheet.  But it does have pretty graphs and pictures!

@Brianna Schmidt Nice! Spreadsheets are good, but pretty is great! Couldn't we all use some more 'pretty' in our investing? :)

@John E.  - We all need just a little pretty!  :)

@Brianna Schmidt Someone is about to bulldoze past the 1000 post mark! Kudos to you! You're definitely BPs success story of the week! Keep doing what you're doing. :) 

@Brianna thanks for the link to the calculator. Is there another alternative to that? I am not a pro member. I found an excel spreadsheet in the files section titled Cash-flow analyzer so that may be a good one?

John, I am just trying to see how my current property is doing. And get thoughts from the BP members on what they think is good, bad, etc.

@Lance L.  I am looking for the same thing. Not analyzing a potential deal but analyzing the properties current performance. Maybe indicating when I need to refinance!

Hey folks, yeah the link @Brianna Schmidt posted, to the Calc, is the BP one. If you are not a pro, and want the free version, grab the one in the file place that Brianna also pointed to - http://beta.biggerpockets.com/files/user/brandonat... - . The BP Calculators were built off that spreadsheet, but have some added features. But that should get you what you need! :) (P.S. Brianna- congrats on #10000!) 

And @Lance Lvovsky  let me know what you think of the BP Calc. You should be able to use it once or twice without being a Pro. Any feedback is always great! 

@Brandon Turner

Thanks for the spread sheet, I like it. However, I am looking for something else. Is there a spreadsheet you use to monitor your current portfolio's performance? To evaluate current performance, to see what appreciation looks like, how much equity pay down you had, actual cash flow, yearly expenses, ect.  

Thanks again!!

Ahh @Erik Drentlaw - I don't think I have anything like that. Might be something in the FilePlace, not sure. But it's a good idea! I'd love to have an online version here on BP someday for that! 

@Brandon Turner

I think it was in the Millionaire Real Estate Investor Book that it was mentioned to always be watching your ROI and ROE on your current properties, that way you can know when you need to sell or refinance.

I would think people would have a sheet like this but I have not been able to find one, maybe I'm being to literal or looking to much into this.

Thanks for the help!

@Brianna Schmidt  thanks for posting the spreadsheet. I'm new and practicing analyzing deals by running numbers on deals posted in the forums and had a question. I can't figure out how the purchase cap rate comes to 14.41%. I understand cap rate is the annual net income/purchase price. But when I run it, I get a much lower number. What am I not taking into account?

@Brianna Schmidt ahhh...thank you again!!

Thanks Brandon and Brianna for sharing! I will play around with the spreadsheet and calculator and report back. quick question- I would assume that the security deposit should not be included in any calculations?

@Lance Lvovsky  - Correct.  SD is not your money and usually (depending on your state) has to be kept in a separate account and diligently accounting for any deductions.  If you do a non-refundable move in fee than that is yours top keep.  There was a pretty interesting convo about it not too long ago

http://beta.biggerpockets.com/forums/52/topics/126...

@Brianna Schmidt

Thanks for being so helpful to all of us at BP!

Congrats on stepping out on your own and congrats on 1,000 posts!

I am curious how many units/properties you obtained prior to doing REI full time. I know there is not a magic number for everyone but I am trying to learn as much as I can from successful investors.

Thanks,

Jordan

@Jordan Vires  - I don't mind sharing, that is what BP is all about in my mind.  Others sharing their knowledge and experience to help others grow.  So once this deal closes in a few weeks.  We will have 11 buildings and 27 units

Thank you @Brianna Schmidt for the help!

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here