Investment calculators you use??

Question

Hi there, what calculators do you use to analyze rental property deals (besides those on BP)? Thanks for any suggestions?

Dustin Beam · Answer

I use my own spreadsheet (also uploaded on BP). Don't care if you use mine, I just always encourage people to use something. Make sure you understand it and feel it makes sense to you.

Kevin Dong · Answer

my head. Lol. Usually I calculate on the calculator that comes with every phone.

Michelle N. · Answer

@John Leavelle . I am looking for buy and hold rentals. Was just curious if there was something else out there that people use and I could compare. Thanks!

John Thedford · Answer

If you want to do it the old fashioned way:PGI--potential gross income -VCL--vacancy and collection losses (I use one month about 8%)--this may not apply to your area+OI-other income (laundry, cable, etc)=EGI-effective gross income

-OE--operating expenses (does not include financing)=NOI--net operating comeYou can then run a quick cap rate if desired

Properties do NOT require a mortgage, so mortgages are not factored into NOI

Once you have NOI, you can factor in a mortgage to determine your cash flow-if any.I have a couple that I lose money on every month and knew this before I purchased them. They are on short term mortgages-five years or less--then my cash flow explodes. Before I took this on, I considered IF I could "feed them" and the answer was yes due to many others that are free and clear and producing enough cash to cover the negative ones. On top of that, I got them substantially under market. MAKE YOUR MONEY WHEN YOU BUY. I have got some great deals that I never ran the numbers on. I knew they were home runs.

John Leavelle · Answer

Howdy @Michelle N.

Are you wanting calculators or spreadsheets?  A basic calculator is all I use for initial analysis (back of the napkin stuff).  Since I like buying distressed properties I need to include more details for the Rehab portion.  So I use a spreadsheet program developed by a BP member, Daniil Kleyman, called "Rehabvaluator".  If you are interested in normal Buy & Hold rentals with minimum repairs the BP calculators should be sufficient.  If you want more detailed stuff then you are looking for spreadsheet programs.

Michelle N. · Answer

@Andrew Kerr . Thanks!

Andrew Kerr · Answer

@Michelle N. - most of my stuff is initially done in my head or on the back of a napkin. If I start getting serious about a deal, the BP calculators work well. Then for some bigger projects that require more in depth modeling, I have used templates from GETREFM.