Know the figures, BEFORE You Buy!  

  "Rule of Thumb:   Don't make a decision to buy, hold, or sell based on emotional factors.  In particular, don't buy a building because you've fallen in love with it: and don't hold  because of sentimental attachment when you really ought to sell.  If you need that warm and fuzzy feeling, get a puppy."  Excerpt from:  What Every Real Estate Investor Needs to Know About Cash Flow  By: Frank Gallinelli

The following forms are EXAMPLES ONLY!   

Calculation Sheet #1 - Purchase with Cash  

Calculation Sheet #2 - Purchase with a Loan 

 The examples calculate the following information and more... 

• Purchase Price
• Closing Costs
• Unit Price
• Gross Rent Multiplier
• Downpayment / Cash
• Depreciation
• Gross Annual Rent
• Vacancy Rate
• Annual Opperating Expenses
• Gross Opperating Income
• Annual Debt Service
• Net Opperating Income
• Taxes Paid / Saved
• Return on Investment
• Cap Rate
• Cash on Cash

It is important to have all of the peices of the puzzel before you decide to make any investment, especially with real estate. If you find a property that you are interested in give me a call and I can run the figures through this investment sheet to see where it will "pencile".  You have nothing to loose and everything to gain!

Some Basic Terms

 Gross Operating Income (GOI):  This is the gross scheduled income, less the vacancy allowance. 

Net Operating Income (NOI):  This is the gross operating income, less the operating expenses.

Annual Property Operating Data (APOD):  This is the real estate equivalent of an income-and-expense statement.