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Excel Spreadsheet
Does the Analysis Forecast Profitability?
Using the Cap rate and Gross Rent Multiplier numbers calculated using
the spreadsheet, various properties may be compared to each other.
Additional metrics, (example: income/sq. ft./month) can be used to evaluate
properties.
What if the interest rate was lower?
How would one change matter? There are dozens of variables that you
can adjust. How does increasing the budget available for future improvments
change the long term profitability? Is a $10,000 kitchen remodel worth
the expense if you sell in 5 years? See how adjusting the variables in
the forecasting equation affect the future value.
If you are planning on investing in Real Estate, this tool
could be useful in forecasting your return on investment.
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