Explanation of My Spreadsheet

Mortgage Rate - This number is generally about 1% higher for investors than it is for conventional homeowners. So check the rates and add at least 1% to the going rate. I tend to add 1% and round up a bit more.

Mortgage Length - Amortize the loan over 30 years if your lender will let you. Even if you want to pay it down over 15 years, a 30 year loan lets you off the hook if you are having a bad run. For commercial loans 25 years with a 5 year ARM is a good default for 5+ units

Monthly Mortgage payment - This is math. Excel is my tool of choice here.

Taxes - Get the exact number from the listing/broker.

Sewer and Water - This is always a bit of a guess. Even with the back bills, you are still estimating. Always guess a bit high here if you don't know otherwise. Here in the Northeast I estimate $12.50 per bedroom per month, minimum $100 per month.  Most municipalities charge a monthly fee of some kind just for having the account.

Trash - Call the local companies for prices if this isn't included in your taxes. Tenants generate an AMAZING amount of trash. I figure at least 1 cubic yard/month/apartment for dumpster rentals. This line should also include recycling rentals.

Heat/Utilities - These are the utilities that the landlord has to pay. Basic things like a lightbulb may only cost you $0.83/month in electricity but most places charge ~$4 to have an account each month. If you pay anything, figure at least $5/month here.

HOA/Legal - Homeowner's associated fees go here. I throw any legal entity items on this line. I recommend you seperate each property into its own company; 123 Smith St Inc/LLC. The cost of keeping the company name each years varies A LOT from state to state.

Cap Ex and Ops - Do the actual math for the items you are going to replace in the next 30 years. Add everything up and divide by 360. This number is going to be much higher than you think. I also include things like snow plowing on this line. Many people seperate out their Operations (Ops) cost on another line.

Insurance - Get the actual numbers from the current owner's bills. Then verify if you want to actual investigate the place further.

Mgmt Fee - Minimally 10% of gross. If you can find a better deal, awesome.

Vacancy - I use 8.3%. That is 1 vacant month per apartment per year. I.e. it is only ever rented for 11 months. You want to strive to do better than this but this gives you a nice conservative number. This is especially important if you are taking over older buildings that will need a bunch of work in the first 2-4 years you own them.

Total Expenses - total of above

Unit 1-12 - This is the total of the revenue generating spaces at your property. Remember this could include laundry, parking, storage, storefronts and apartments.

Total Revenue - Sum of the units

Cashflow/month - revenue - expenses

Cashflow/year - above x 12

Cash on Cash Return -more math