[Calc Review] Beginner on right track?

Question

First time posting. Looking for advice if I'm on the right track in analyzing properties. I've done several and while I know not every property is a deal or will make money many of the final numbers I come back with based on the listed sale price seem way off so want to make sure I'm not crazy

I'm at beginning stages of making sure I can quickly and accurately analysis a property. Not necessarily even choosing properties at this time I would want or afford. I have an example of a local site I did below

Regarding the template I'm using. Is it too much? Should it be simplified at all?

I'd be interested if anyone has the time or desire to analysis this same property with their own method and see what numbers you get as a purchase price to make it profitable/worth investment.

Yellow cells = user inputs.

Numbers below reflect renting both sides of duplex.

https://www.dropbox.com/s/bnr89cpu9krrkxn/REI%20An...

Jim Goebel · Answer

@Kyle Jey

Seems a bit much/over the top to actually use in the process of buying, however I will say that there would be a lot of useful info in there.  Your numbers should match your intuition and yes, there's only a subset of properties that make sense to buy from an investment perspective.

The most simple analysis there (don't need a big excel sheet) is simply:

Monthly Rent/Purchase Price

The higher the ratio, the better.  Don't make it more complicated than it needs to be.  Start there, THEN run the the more detailed analysis...

Once you start introducing leverage, that's where the fun starts.

My guess Kyle is that you have a very analytical background but heavy in the accounting/financial/excel world.  Nothing wrong with that, but if I'm guessing right, I'd encourage you to find ways to 'get your hands dirty' and tinker with building some stuff.  Help friends build a garage over the weekend for free.  Habitat for Humanity, etc.

I don't want to assume but that's my read and that's what I see helping you the most if you want to get rolling.