All Forum Posts by: Brad Saari

@Travis Sperr yeah good points. Need to let this one go :)

@Travis Sperr Yes, more than likely renting to a complete stranger. 

When you say "there won't be an issue until there is - fire in kitchen, tenant issue, etc" how would this differ from a property zoned for multi unit?

Good point, can't necessarily recoup the cost of making it a 2nd unit on resale.

@Travis Sperr Well, I want to follow the rules to the point of not cheesing off the city/county/state.

The 2nd kitchen would be added after the financing is complete/after closing

There's already a wet bar that would be converted into the kitchen area...not sure if that matters in terms of needing to pull permits.

Yes, in terms of making a SFH a two unit. This would be a house hack with me living upstairs. Some light construction/framing is needed to properly separate the entrances at the back of the house.

I will keep them on the same meter and include the cost of water/electric/heat in the rent price.

I'm looking at a property that is zoned U-SU-C (Urban-Single Unit). The property has two conforming bedrooms (egress windows) and 2 bath in the basement. I'd need to add a kitchen and laundry before renting it. Should I forget about this one due to zoning our are there ways around this? 

Alright gang, I've uploaded a more accurate copy regarding CoC and ROI. I also followed some of Derek's suggestions on sensitivity variables, tho I'm just cancelling out income and expense increases at 2% each. Changed some formatting and usability stuff.

If anyone wants to take a stab at TMV/PV or IRR please feel free but I'm omitting those for now

@Derek Carroll Can you explain what you meant by "Your ROI calculation is off in a few ways. You're not taking into account the loan balances if any that are being paid off, you're again using total investment which includes borrowed funds." Isn't Total ROI simply = annual cash flow + equity / Money out of Pocket? Doesn't that hold true year after year?

For Time Value of Money/Present Value what would you use as the discount rate? Loan APR?

@Derek Carroll I really appreciate the input. I'll post the suggested changes tomorrow.

I see people downloading but not getting any commetns :-)

Thanks for the input Julie! 

Good recommendation, I'll update with highlighted input cells shortly 

I'm sure I made a few mistakes but its becoming a useful tool. Whatcha think?

Tab 1 - Deal Overview

Tab 2 - 10/20 Year Financials

Tab 3 - Loan 1 Amortization

Tab 4 _ Loan 2 Amortization

https://www.biggerpockets.com/files/user/JBradford77/file/deal-analyzer