SFH Rental Analysis (Spreadsheet)

99 Replies

Is the spreadsheet no longer attached to this thread?   Can someone point me to where I can download it?   Thanks!

Never mind I found it!

I also had a similar question along the lines of depreciation. Do you include this "expense" in your NOI (I think the answer is no?) but do you include this in your CoC calculation as well as your "free cash flow" (your $/month/door true profit)?

also what about calculating federal and (if applicable) state income taxes - I assume this is not part of your NOI but should it be part of your CoC return or monthly free cash flow?

I am still learning so be kind if I am way off basis  :)

Originally posted by @Kyle D. :

I also had a similar question along the lines of depreciation. Do you include this "expense" in your NOI (I think the answer is no?) but do you include this in your CoC calculation as well as your "free cash flow" (your $/month/door true profit)?

also what about calculating federal and (if applicable) state income taxes - I assume this is not part of your NOI but should it be part of your CoC return or monthly free cash flow?

I am still learning so be kind if I am way off basis  :)

 Tax implications are typically not included in the cash flow number -- they are figured below the cash flow line.  The reason being that everyone will have different tax implications on their cash flow, and even the same person may very well have different tax implications in different years.

Check out this must-read:

http://www.amazon.com/Every-Estate-Investor-Financ...

OK sounds good on the income tax question.

What about depreciation? Should that influence NOI or free cashflow?

Also, why do some people include Vacancy in the Operating Expenses ? (in my mind,  It is potential Income but you aren't having to "pay out" the same as when your utility bill comes every month)

Originally posted by @Kyle D. :

OK sounds good on the income tax question.

What about depreciation? Should that influence NOI or free cashflow?

Also, why do some people include Vacancy in the Operating Expenses ? (in my mind,  It is potential Income but you aren't having to "pay out" the same as when your utility bill comes every month)

Depreciation is a tax benefit...and it's recaptured at sale.  So, it is not factored into the cash flow.

Vacancy is not an expense.  Vacancy (including rent loss and concessions) is deducted from "Gross Income" to get "Gross Operating Income."  Expenses are then deducted from Gross Operating Income to get "Net Operating Income".  From there, you can subtract debt service and capex to get "Cash Flow" (or "Cash Flow Before Taxes" as some would call it).

That said, some people around here (myself included) will generally say "Expenses" when we mean "Vacancy/Rent Loss, Expenses and CapEx". From and accounting standpoint, this is incorrect (since neither vacancy nor capex are really expenses), but it makes some of the ratios (like the 50% Rule) easier to calculate.

Originally posted by @Kyle D. :

another Q.

how do you account for deposits? 

do you treat them as income and then as an expense when (possibly partially) paid out? 

 If you're using Quickbooks or a similar accounting program, you'll categorize each of your transactions.  Deposits of rent would be considered income.  Payments for expenses would be categorized based on the type of expense -- for example, it might be categorized as "Expense" or it might be categorized as "Fixed Asset" (for anything that needs to be added to the basis and/or depreciated).

Originally posted by @Kyle D. :

I'm sorry. I meant "Security Deposits"  (separate from rent )

 I record it as a General Journal Entry in Quickbooks, with one side of the transaction being a deposit to a bank account and the other side being a credit against an "Other Current Liability" account called "Security Deposits".

In addition to answers:

-- Income is when you consider money received as revenue

-- Deposits received should be considered as a Other Current Liability

-- Money paid out could be Expenses, Cost of Goods Sold, Fixed Asset, Other Asset, Other Current Asset, Other Current Liability, Long Term Liability or an Equity Account

It all depends why you paid money, does it increase the value of your property, return a debt or .....

Gita Faust

Thanks.

I am analyzing a rent roll in MS on a 16 unit bldg and the mgmt co is just lumping security deposits into the check paid to the owner.

So basically I need to take $300 * 16 and add that as an expense to reduce the NOI for analysis purposes. Right?

Originally posted by @Victor Rios :

Thanks for the spreadsheet it is awesome !

Quick question though... What percentage do you put on vacancy? How do you find that out?

 I typically use about 8.3% (one month per year) -- this seems conservative, but I'd rather be conservative than get burned.

Find a good PM in your area -- they should know the general statistics...

This post has been removed.

Hello, I am very new to this as I am here trying to evaluate properties. Can you please explain in detail what these mean ?

I see CF & ROI (Outsourced PM) and CF & ROI (Doing my own) What does these tell me ?

-Variable Cost PM

-Fixed Cost Pm

-What number do I input in these boxes ?

For Vacancy I am putting 8%

-For instance I see  Insurance  Annual ...on the RED do I put how much it will cost yearly for home insurance of property?

What are some Fixed numbers that I can leave on this spreadsheet that can provide me with somewhat accurate data ?  I want to be able to see the total cash flow that each property I input in spreadsheet.

Originally posted by @Victor Rios :

Hello, I am very new to this as I am here trying to evaluate properties. Can you please explain in detail what these mean ?

I see CF & ROI (Outsourced PM) and CF & ROI (Doing my own) What does these tell me ?

-Variable Cost PM

-Fixed Cost Pm

-What number do I input in these boxes ?

For Vacancy I am putting 8%

-For instance I see  Insurance  Annual ...on the RED do I put how much it will cost yearly for home insurance of property?

What are some Fixed numbers that I can leave on this spreadsheet that can provide me with somewhat accurate data ?  I want to be able to see the total cash flow that each property I input in spreadsheet.

 Start here:

http://www.biggerpockets.com/renewsblog/2010/06/30...

Thanks @Jscott

I knew some of the answers, but after doing some analysis on properties my number were wrong compared to others so I  kept on questioning my numbers. I finally found the error. Thanks for the link. It helps very much !

HI all, 

Sorry, I am new so this may certainly be my problem. I have gone back to the links reposted on pages 2 and 3 that seemed to work in the past and am not able to find the download location for this file. Would love to have this spreadsheet.  If anyone has an active link to this spreadsheet can you repost? Sounds like just what I need. ..

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