The procedure requires:
• selecting a target home price and a target rent price for properties of comparable size and location (or the same property);
• replacing default numbers with data tailored to your personal situation for more accurate results.
More specifically, data to be entered include, for the “Buy” scenario:
• Target Home Price
• Buying Closing Costs (% of the home cost)
• Annual Property Tax, Home Insurance, Maintenance (% of home value)
• Annual Property Appreciation %
• Down-payment %
• Mortgage Rate (fixed/variable)
• Mortgage Term (or time horizon, if no mortgage was taken)
• Selling Closing Costs (for the sake of uniform comparison, the sale is assumed at the end of the mortgage term, at the estimated appreciated value)
And for the “Rent” scenario:
• Target Monthly Rent
• Security Deposit
• Renter’s Insurance (% of annual rent)
• Annual Rent Appreciation %
Based on the above, the model calculates the mortgage repayment schedule and value generated during the time horizon for the 2 scenarios, taking into account all costs plus return on the invested liquidity.
Similar Products
Other customers were also interested in...
Property Flipping Financial Model
The Property Flipping Financial Model forecasts the financial viability of up to 10 real estate prop... Read more
Real Estate Financial Model Bundle
This is a collection of financial model templates that provides the financial projections and valuat... Read more
Mixed-Use Real Estate Model: Leverage / JV Options
A general real estate model to plan all assumptions for up to 7 'uses' for a given property. Include... Read more
Real Estate Financial Model Templates Package
This is a collection of ready-made Excel financial model templates for real estate businesses and it... Read more
Multi-Family Apartment Complex – Acquisition...
General Overview Advanced financial model presenting an acquisition scenario for a Multi-family A... Read more
Real Estate Acquisition-Rent-Sell Comprehensive An...
An integrated, dynamic and ready-to-use Real Estate Acquisition-Rent-Sell Comprehensive Analysis Mod... Read more
The Realtors Quintessential ALL-IN-ONE Toolkit
Professional Realtors need a professional Toolkit which allows them to operate at a higher level. Th... Read more
Real Estate Private Equity (REPE) Financial Model
Real Estate Private Equity (REPE) firms raise capital from outside investors, called Limited Partner... Read more
Condominium Development – Dynamic 10 Year Fi...
A condominium (or condo for short) is a building structure divided into several units that are each ... Read more
Single Family Residential Property Investment Mode...
Financial model presenting an investment scenario (buy, hold, sell) for a Single Family Residential ... Read more
You must log in to submit a review.