Chandler Properties Blog

Today’s blog is going to talk about a great new tool that I have added to the “Resources” page.  It is called the REI Property Analyzer.  The Property Analyzer is an Excel spreadsheet I have created to evaluate properties.  This spreadsheet allows a user to enter various input variables and see how they effect cash flow, Net Operating Income (NOI), Return on Investment (ROI), Loan to Value (LTV) ratios, etc.  For purposes of demonstrating the spreadsheet, I have entered some sample numbers.  Notice that if you change the mortgage amount ($187,000), interest rate (6%), or term (30 years) the monthly mortgage payment changes.

Below are a list of the input variables that are highlighted in the green cells on the spreadsheet.

Input Variables:
1. Property Cost
2.Interest Rate
3.Mortgage Amount, Term, Interest Rate
4.Rent Revenue
5.Vacancy Factor
6.Expenses (Operating)

Once information is entered into the green cells, the output results are automatically updated in the yellow cells.  The following is a sample of the output results from the spreadsheet.

Output Variables:
1.Monthly Mortgage Payment
2.Annual Interest Expense
3.NOI
4.Annual Cash flow (Net Cash flow)
5.Taxable Income
6.ROI
7.ROA
8.CAP Rate
9.LTV

These ratios and amounts will help you evaluate if a property cash flows, has a good ROI, or is over-leveraged.  I hope you find this to be a helpful tool to evaluate potential investments.  Feel free to modify this spreadsheet to better suit your needs.  Any feedback is appreciated.