RentalPropertyAnalyzer.xls

Rental Property Analyzer

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Step 1: Replace sample data with your data and tab to next entry. Analyzer updates after each entry.

Step 2: View your projected results! Note that you can see the projected results in three views below.

Purchase of Property

*-How to Enter Data

View 1--Gross return (think compound interest)

Price you will pay for the property?

*-Enter amt., hit tab

Your safe investment rate before taxes is

Down payment?

Your compound rate of return on this property is

First mortgage amount?

This return is better (worse) than your safe rate by

First mortgage period in years?

*-Enter yrs., hit tab

First mortgage interest rate?

View 2--After-tax adjusted rate of return

Monthly payment (calculated)

Your safe investment rate after taxes is

First mortgage points (percent)?

*-Enter %, hit tab

This property produces an after-tax annual return of

Points (calculated dollar amount)

This return is better (worse) than your safe rate by

Other first mortgage closing costs

Total costs to obtain mortgage

View 3--After-tax cash profit (loss)

Closing costs to obtain title (transfer/stamp taxes, survey, etc)?

In today's dollars (present value), you invest

In tomorrow's dollars (future value), you walk away with

Second mortgage? Enter 1 for yes, 2 for no.

This gives you a cash profit (loss) of

Number of years you will own this property

Second mortgage amount?

""

Second mortgage period in years?

Second mortgage interest rate?

Monthly payment (calculated)

Balloon payment on second mtg? Enter 1 for yes, 2 for no.

""

Year of balloon payment?

Balloon payment (calculated)

Second mortgage points or other

acquisition costs?

Rental Income

Monthly rent?

Annual rent

Vacancy rate as a percentage?

Net annual rental income

Expected annual increase in rent as a percentage (your best guess)?

Income Taxes

Federal tax rate on ordinary income?

State tax rate on ordinary income?

Federal tax rate on unrecaptured section 1250 gain?

Federal tax rate on capital gains?

State tax rate on capital gains?

Do you qualify according to tax law to deduct your passive losses? Enter 1 for yes, 2 for no.

Investment Return

Annual percentage return you earn on a safe investment?

Tax rate (combined state and federal) that applies to this safe investment?

For reference, your combined ordinary income state and federal tax rate is to the right of this note.

After-tax safe return (calculated)

Appreciation in Property Value

Years you intend to own this property?

Anticipated average annual appreciation in property value?

Selling price of property (calculated)

Real estate commissions and closing costs on the sale of this property as a percentage of selling price?

Property Ownership/Carrying Costs

Real estate taxes per year?

Annual increase in real estate taxes?

Property management fees?

Annual increase in fees?

Tenant location fees?

Annual increase in fees?

Repairs and maintenance per year?

Annual increase in repairs/maint.?

Property insurance?

Annual increase in insurance?

Utilities per year?

Annual increase in utilities?

One-Time Property Ownership/Carrying Costs by Year

Condo fees?

Annual increase in condo fees?

Other expenses?

Annual increase in other expenses?

Allocation of Purchase Price to Land, Building

Commercial property? Enter 1 Residential property? Enter 2

Purchase price of property?

Closing costs to perfect title?

Total cost (basis) of property

Percent of cost (basis) to land?

Basis of land

Basis of building

To keep this worksheet straightforward, cost segregation and potential personal property depreciation are not considered.

Calculated amounts to produce the results above.

Year

Annual rent

Vacancy rate

Net annual rental income

1st mortgage interest

2nd mortgage interest

Real Estate Taxes

Property management fees

Tenant location fees

Repairs & Maintenance

Property insurance

Utilities on property

One-time costs

Property condo fees

Other

Tax-deductible cash outflows

Depreciation (Building) 27.5 or 39 yr

1st mortgage costs amortization

2nd mortgage costs amortization

Net Taxable (Income) Loss

Passive loss (income)

Taxable (income) loss

Tax Rate

Cash inflow (outflow) from taxes

Accumulation of Passive Losses

Passive loss not deducted for year

Passive loss deducted

Cumulative passive loss

Remaining taxable income

Nontax Cash outflows (inflows)

1st mortgage principal paid

2nd mortgage principal paid

Down payment

N / A

Balloon payment on 2nd mortgage

1st mortgage acquisition costs

N / A

2nd mortgage acquisition costs

N / A

Costs to obtain title

N / A

Tax-deductible cash outflows

Net cash benefit from deductions

Cash outflow (inflow)

Present values of cash outflows

Cash outflow only

Applicable cash outflow

Present value of applicable outflow

Cumulative present value

Future value of cash inflows

Cash inflow only

Applicable cash inflow

Future value of applicable inflow

Cumulative future value

Add net cash from sale of property

Less taxes on sale of property

Add benefit of unused passive losses and unamortized expenses

Net cumulative future value

Cash proceeds from sale of property

Selling price of property

Selling expenses and closing

Net sales proceeds

Payoff second mortgage

Payoff first mortgage

Net cash from sale

Adjusted basis

Purchase price

Cost to obtain title

Less depreciation

Adjusted basis day of sale

Unused deductions

Cumulative unused passive losses

1st mortgage unamortized costs

2nd mortgage unamortized costs

Total

Ordinary tax rate

Year of sale cash benefit

Gain or loss on sale

Net sales proceeds

Adjusted basis day of sale

Gain (loss)

Taxes on sale

Unrecaptured 1250 gain

Tax Rate on uncaptured 1250 gain

Federal tax on 1250 gain

This is the tax you pay on the amount of the gain attributable to straight-line depreciation.

Capital gain

Federal tax on capital gain

State tax on capital gain

Income taxes on sale of property

Draw down of amortizable mortgage costs

1st mortgage acquisition costs

2nd mortgage acquisition costs

Mortgage Amortization

Second Mortgage Amortization

Principal

Year of balloon payment

Interest

Balloon payment

Years

Payment

Year

Beg/Prin

End/Prin

Pmts

Int.

Prin/Pay

Total

Year

Beg/Prin

End/Prin

Pmts

Int.

Prin/Pay

Total