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Tom's Real Estate Evaluator

Describe

 
State:
, Quality:

Quantify

Property
Information:
$
$
$
$ / year
$ (from tax records)

Market
Information:
Expected Vacancy Rate: %
Expected value appreciation: % / year
Expected cost inflation: % / year
Sales cost %
Sell After years

Mortgage
Information:
LTV(Loan/Value as %): %
Loan fees, points: $
Loan Interest Rate: % (Monthly {{LIR/12|number:2}}%)
Amortization Schedule (often 360) months

Operating
Information:
# Units:
Average Unit Rents $ / month
Insurance: $ / year
Repairs: % / year
CapEx % / year
Propty Mgmt Fees % (>5 units: 4%. 1-4 units: 10%)
Average Unit W/S/G/Electric/Gas
utilities owner-payable:
$ / month

{{PropertyName}} Report:

This report aims to help you evaluate {{PropertyName}} as a {{Purpose}} investment.

This is a {{PropertyType}} property in {{PropertyCondition}} condition located in the {{NeighborhoodQuality}}-quality neighborhood {{Neighborhood}} {{City}}, {{State}}.

Details: {{Description}}

By spending {{CashIn|currency:$:0}} (Purchase Price {{Price|currency:$:0}}, Repair Cost {{RepC|currency:$:0}}) you would acquire post-repair, pre-refinance equity of {{ARV|currency:$:0}}, an increase of {{ARV - CashIn| currency:$:0}} over your investment.

You would then have the option to flip the repaired property, paying {{SellC}}% selling costs and taking {{(ARV*(100-SellC)/100)-CashIn|currency:$:0}} as a short-term gain of {{((ARV*(100-SellC)/100)-CashIn)*100/CashIn|number:2}}%.

The property's gross income is projected as {{NUnits}} units * {{URentM|currency:$:0}} = {{NUnits*URentM|currency:$:0}}/month or {{NUnits*URentM*12|currency:$:0}}/year in scheduled rents.

But plan to lose {{VA}}% to vacancies, and save {{FRP+CXP}}% more for future needs including repairs ({{FRP}}%) and capital expenditures ({{CXP}}%), leaving {{100-VA-FRP-CXP}}% to operate on.

Operating will cost {{PMP}}%={{PMY|currency:$:0}} in property management fees, {{UY|currency:$:0}} owner-paid utilities, {{TAXY|currency:$:0}} taxes, and {{InsY|currency:$:0}} insurance expenses, annually.

If you choose to leave your capital in the property and not borrow it back out, your cash flow (that is, before debt service) is {{CFBDM|currency:$:0}}/month, {{CFBDY|currency:$:0}}/year.

If you refinance after repairing the property and get a {{AM/12|number}}-year mortgage with {{LTV}}% LTV of {{LA|currency:$:0}} at {{LIR}}%/year, with fees and points of {{LoanC|currency:$:0}}, then your cash out is the cash you put up {{CashIn|currency:$:0}} plus {{CashOut|currency:$:0}} for a pot of {{CashIn+CashOut|currency:$:0}}, a short-term gain of {{100*(CashOut)/CashIn|number:1}}%.

Your loan costs are {{PIM|currency:$:0}} for monthly principal and interest, {{PIY|currency:$:0}} annually.

After all that, your free cash flow (after debt service) is {{CFADM|currency:$:0}}/month, {{CFADY|currency:$:0}}/year, not including a tax deduction of {{ImpsC/27.5|number:0}} which might be worth {{ImpsC*0.3/27.5|currency:$:0}}).

If you add the free cash flow to your mortgage payments, you can potentially pay it off between {{LA/CFBDY|number:2}} and {{(LA/CFADY)|number:2}} years.

Alternatively if you just pay the full-term-amortized principal and interest, then after {{AM/12}} years you will have spent {{PIM*AM|currency:$:0}} in paying off the loan of {{LA|currency:$:0}}. In either case, ignoring inflation, after paying the mortgage your income from the property will be {{CFBDM|currency:$:0}}/month or {{CFBDY|currency:$:0}}/year.

If you pay the mortgage on schedule in {{AM/12}} years and hold it debt-free for another {{SAY-(AM/12)}} years, and you sell it at the end of those {{SAY}} years, then you will collect free cash flows of, during the paydown phase {{Rslow|currency:$:0}}, and after the mortgage is paid off, {{Sslow|currency:$:0}} and after the sale, {{Proceeds|currency:$:0}} if it appreciates by {{AppY}}%/year and your cost of the sale (commission etc) is {{SellC}}%. Of course you got {{LA|currency:$:0}} out during the initial refinance, also. So your total return will be {{CashIn+CashOut+Rslow+Sslow+Proceeds|currency:$:0}} on an initial (and temporary) investment of {{CashIn|currency:$:0}}.

 

Projected Flows
Income / Expense Summary

Adjustment Balance
Item per month per year Value per month per year







Scheduled Gross: {{GIM|currency:$:0}}or {{GIY|currency:$:0}} = The Top Line: {{GIM|currency:$:0}} or {{GIY|currency:$:0}}
- Vacancy Allowance ({{VM|currency:$:0}}) or ({{VY|currency:$:0}}) = Received Gross: {{RGIM|currency:$:0}} or {{RGIY|currency:$:0}}
- Operating Expenses ({{TOM|currency:$:0}}) or ({{TOY|currency:$:0}}) = Net Operating Income: {{NOIM|currency:$:0}} or {{NOIY|currency:$:0}}
- Capital Expenses ({{CXM|currency:$:0}}) or ({{CXY|currency:$:0}}) = Cash Flow (pre Debt):{{CFBDM|currency:$:0}} or {{CFBDY|currency:$:0}}
- Debt Service ({{PIM|currency:$:0}}) or ({{PIY|currency:$:0}}) = Free Cash Flow:{{CFADM|currency:$:0}} or {{CFADY|currency:$:0}}

Projected Income / Expense Details:

Initial Capital

  • Out of Pocket (Cash In): {{CashIn|currency:$:0}} (includes {{Price|currency:$:0}} to purchase and {{RepC|currency:$:0}} to repair, before refinancing).
  • Flip Option: Sell after repairs for {{ARV|currency:$:0}}, less selling costs {{SellC}}% leaves {{(ARV*(100-SellC))/100|currency:$:0}} including return of your original {{CashIn|currency:$:0}} plus a flip gain of {{-CashIn + (ARV*(100-SellC)/100)|currency:$:0}}.
Operating Expenses
  • Utilities by owner: {{UUM}} * {{NUnits}} units = {{UM|currency:$:0}} / month = {{UY|currency:$:0}} / year
  • Taxes: {{TAXY/12|currency:$:0}} / month = {{TAXY|currency:$:0}} / year
  • Insurance: {{InsM|currency:$:0}} / month = {{InsY|currency:$:0}} / year
  • Repairs: {{RM|currency:$:0}} / month = {{RY|currency:$:0}} / year
  • Property Management: {{PMM|currency:$:0}} / month = {{PMY|currency:$:0}} / year
  • Total Operating Expenses: {{TOM|currency:$:0}} / month = {{TOY|currency:$:0}} / year

Capital Expenses

  • CapEx allowance = {{CXM|currency:$:0}} / month = {{CXY|currency:$:0}} / year

Debt Service

  • Principal: {{LA|currency:$:0}}
  • Principal & Interest payments: {{PIM|currency:$:0}} / month, {{PIY|currency:$:0}} / year
  • Total Interest: {{(PIM*AM)-LA|currency:$:0}}
  • Total Payments: {{PIM*AM|currency:$:0}}

Total Expenses

  • Total Expenses = {{TXM|currency:$:0}} / month = {{TXY|currency:$:0}} / year

Ratios & Evaluation Metrics:

Cash In: {{CashIn|currency:$:0}} (price {{Price|currency:$:0}} + repairs {{RepC|currency:$:0}})
Buys: {{NUnits}} units * {{URentM|currency:$:0}}/mo * 12 = {{GIM*12|currency:$:0}}/yr scheduled rents.
Net Operating Income (NOI): {{NOIY|currency:$:0}} / year (before Capital Expenses)
Capitalization Rate (NOI/Cash In): {{100*NOIY / CashIn|number:2}}%. [>10%]
Debt Service Ratio: {{CFBDM/PIM|number:2}} [>1.4]
Cash Before Debt On Cash: {{100*CFBDY / CashIn|number:2}}% / year (after Cap Ex)
Cash After Debt On Cash: {{100*CFADY / CashIn|number:2}}% / year
Monthly Rent / Purchase Price Rule: {{100*URentM*NUnits/CashIn|number:2}}% [>1% or >2%]
Equity gain before refinancing: {{GainPreL|currency:$:0}} = {{100*GainPreL/CashIn|number:2}}% of Cash In.
Equity after refi at {{LTV}}% LTV: {{EqPostL|currency:$:0}} = {{100*EqPostL/CashIn|number:2}}% (plus the ${{LA/1000|number:0}}k back in your pocket).
Free Cash Flow Per Door: {{CFADM / NUnits|currency:$:0}} / month [MultiFam >$100, SFR >$200])
Total Return After Sale: {{Rslow+Sslow+Proceeds+CashOut|currency:$:0}}.
Annual Depreciation: {{ImpsC/27.5|currency:$:0}} (tax deduction, if your rate=30% save {{ImpsC*0.3/27.5|currency:$:0}})
// JavaScript Code to reproduce control variables as currently in Enter tab
  s.PropertyName ='{{PropertyName}}';
  s.PropertyType ='{{PropertyType}}';
  s.City ='{{City}}';        s.State ='{{State}}';
  s.Neighborhood ='{{Neighborhood}}';        s.NeighborhoodQuality ='{{NeighborhoodQuality}}';
  s.PropertyCondition ='{{PropertyCondition}}';
  s.Purpose ='{{Purpose}}';
  s.Description ='{{Description}}';
  s.NUnits={{NUnits}}; s.URentM={{URentM}};   s.Price={{Price}};   s.LoanC={{LoanC}};    
  s.ARV={{ARV}};          s.RepC={{RepC}};    s.TAXY={{TAXY}};     s.VA={{VA}};         s.AppY={{AppY}}; 
  s.InfY={{InfY}};        s.SellC={{SellC}};  s.SAY={{SAY}};       s.LTV={{LTV}};       s.LandV={{LandV}};
  s.LIR={{LIR}};          s.AM={{AM}};        s.RefM={{RefM}};     s.InsY={{InsY}};     s.UUM={{UUM}};
  s.FRP={{FRP}};          s.CXP={{CXP}};      s.PMP={{PMP}};       
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HTML&JS&PHP | PHPD(DB select) | client (JS & HTML, INPUT, REPORT, R

Describe

 
State:
, Quality:

Quantify

Property
Information:
$
$
$
$ / year
$ (from tax records)

Market
Information:
Expected Vacancy Rate: %
Expected value appreciation: % / year
Expected cost inflation: % / year
Sales cost %
Sell After years

Mortgage
Information:
LTV(Loan/Value as %): %
Loan fees, points: $
Loan Interest Rate: % (Monthly {{LIR/12|number:2}}%)
Amortization Schedule (often 360) months

Operating
Information:
# Units:
Average Unit Rents $ / month
Insurance: $ / year
Repairs: % / year
CapEx % / year
Propty Mgmt Fees % (>5 units: 4%. 1-4 units: 10%)
Average Unit W/S/G/Electric/Gas
utilities owner-payable:
$ / month

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