Investment Property Worksheet

Designed to assist in estimating the first-year benefits of a real estate investment. 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

Purchase Cost

Cash Invested

Financing #1 Amount

Rate (%)

Term (yrs)

P&I / Month

Financing #2 Amount

Rate (%)

Term (yrs)

P&I / Month

Land Cost

Category
Personal Property	×	=
Building Cost	×	=
Land Improvement	×	=
Total Depreciation		=

Income & Expenses

Annual Rent

Less Vacancy ($)

Gross Operating Income

Annual Operating Expenses

Real Estate Tax

Management

Insurance

Repairs

Utilities

Supplies

Association Dues

Advertising

Miscellaneous

Total Operating Expenses

The Four Benefits

I Cash Flow Before Tax

– Gross Operating Income

minus Operating Expenses

equals Net Operating Income

minus Annual Debt Service (monthly P&I × 12)

equals Cash Flow Before Tax

II Annual Debt Service

– Annual Debt Service

minus Interest (Year 1)

equals Principal Reduction

III Net Operating Income — Tax Paid or Saved

– Net Operating Income

minus Interest

minus Total Depreciation

equals Taxable Income

Tax Bracket %

equals Tax Paid or Saved

IV Appreciation (Estimate)

Estimated Annual Appreciation ($)

Rates of Return

Return on Investment — With Appreciation

Cash Flow Before Tax + Principal Reduction + Tax Saved + Appreciation
÷ Cash Invested

Return on Investment — Without Appreciation

Cash Flow Before Tax + Principal Reduction + Tax Saved
÷ Cash Invested

Capitalization Rate

Net Operating Income ÷ Purchase Cost

Cash on Cash

Cash Flow Before Tax ÷ Cash Invested

Amortization Schedule

Enter Loan 1 details above to generate schedule.

Enter Loan 2 details above to generate schedule.

This material is designed to provide information about the subject matter covered. The accuracy of the information is not guaranteed. This material is sold or offered with the understanding that the author and/or publisher are not engaged in rendering, legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.