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
=
%