All Forum Posts by: Scott Edwards

The Bigger Pockets buy & hold analysis calculator does not take into account the tax benefit of long term ownership, which is substantial. When presenting the analysis to someone not aware of tax benefits, that would seem to be a major omission. Am I missing something here?

I analyzed a property using both the Buy & Hold and Wholesaling calculators and the same variables. Paying the full asking price in cash ($650,000) gives a cash on cash ROI of 4.95%. When I analyzed the same property using the Wholesaling calculator and a required return of 4.95% (equal to the ROI as a rental), I got a max allowable offer price $100,000 less than the price paid for Buy & Hold, even though the wholesaler's profit was set at only $5,000.

This is a huge difference. Can anyone explain the large difference?