Investment Property Worksheet

    This form is designed to assist in estimating the first year benefits of a real estate investment. It does not consider the effect of selling or exchanging the property in the future. This form is not a substitute for legal or tax advice. Anyone contemplating the purchase of a real estate investment should seek the services of competent legal and tax advisors.

    Property Information

     

    Financing
    Financing

     

    Depreciation
    x % =
    x % =
    x % =

    Income & Expenses

     

    Annual Operating Expenses

    The Four Benefits

    I. Gross Operating Income
    minus:
    Operating Expenses
    -
    equals:
    Net Operating Income
    =
    minus:
    Annual Debt Service (monthly P&I x 12)
    -
    equals:
    Cash Flow Before Tax
    =
    II. Annual Debt Service
    minus:
    Interest
    -
    equals:
    Principle Reduction
    =
    III. Net Operating Income
    minus:
    Interest
    -
    minus:
    Total Depreciation
    -
    equals:
    Taxable Income
    =
    multiplied by:
    Tax Bracket
    x %
    equals:
    Tax PAID or SAVED
    =
    IV. Appreciation (estimate)

    Rates of Return

    Return on Investment with Appreciation
    Cash Flow before Tax + Principle Reduction + Tax Saved + Appreciation
    Cash Invested
    =
    Return on Investment without Appreciation
    Cash Flow before Tax + Principle Reduction + Tax Saved
    Cash Invested
    =
    %
    Capitalization Rate
    Net Operating Income
    Purchase Cost
    =
    %
    Cash on Cash
    Cash Flow before Tax
    Cash Invested
    =
    %