Calculator | Jeff Romero

RentalPropertyAnalyzer.v1.3

Rental
Property Analyzer

Comments and suggestions:
Send e-mail to contactus@bradfordtaxinstitute.com

Step 1: Replace sample data with your data and tab to next
entry. Analyzer updates after each
entry.

Step
2: View your projected results! Note that you can see the projected results
in three views below.

Purchase
of Property

*-How to Enter Data

View 1–Gross return
(think compound interest)

Price
you will pay for the property?

*-Enter amt., hit tab

Your safe investment
rate before taxes is

Down payment?

Your compound rate of
return on this property is

First mortgage amount?

This return is better
(worse) than your safe rate by

First mortgage period in years?

*-Enter yrs., hit tab

First mortgage interest rate?

View 2–After-tax
adjusted rate of return

Monthly payment (calculated)

Your safe investment
rate after taxes is

First mortgage points (percent)?

*-Enter %, hit tab

This property produces
an after-tax annual return of

Points (calculated dollar amount)

This return is better
(worse) than your safe rate by

Other first mortgage closing costs

Total costs to obtain mortgage

View 3–After-tax cash profit
(loss)

Closing costs to obtain title
(transfer/stamp taxes, survey, etc)?

In today’s dollars
(present value), you invest

In tomorrow’s dollars
(future value), you walk away with

Second mortgage? Enter 1 for yes, 2 for no.

This gives you a cash
profit (loss) of

Number of years you will
own this property

Second mortgage amount?

“”

Second mortgage period in years?

Second mortgage interest rate?

Monthly payment (calculated)

Balloon payment on second
mtg? Enter 1 for yes, 2 for no.

“”

Year of balloon payment?

Balloon payment (calculated)

Second
mortgage points or other

acquisition
costs?

Rental
Income

Monthly
rent?

Annual rent

Vacancy rate
as a percentage?

Net annual rental income

Expected annual increase in rent
as a percentage (your best guess)?

Income
Taxes

Federal
tax rate on ordinary income?

State tax rate on ordinary income?

Federal tax rate on unrecaptured section 1250 gain?

Federal tax rate on capital gains?

State tax rate on capital gains?

Do you qualify according to tax law to deduct your passive
losses? Enter 1 for yes, 2 for no.

Investment
Return

Annual
percentage return you earn on a safe investment?

Tax rate (combined state and federal) that applies to this safe
investment?

For
reference, your combined ordinary income state and federal tax rate is to the
right of this note.

After-tax safe return (calculated)

Appreciation
in Property Value

Years
you intend to own this property?

Anticipated average annual appreciation in property value?

Selling price of property (calculated)

Real estate commissions and closing costs on the sale of this
property as a percentage of selling price?

Property Ownership/Carrying Costs

Real estate taxes per year?

Annual increase in real estate taxes?

Property management fees?

Annual increase in fees?

Tenant location fees?

Annual increase in fees?

Repairs and maintenance per year?

Annual increase in repairs/maint.?

Property insurance?

Annual increase in insurance?

Utilities per year?

Annual increase in utilities?

One-Time Property
Ownership/Carrying Costs by Year

Condo fees?

Annual increase in condo fees?

Other expenses?

Annual increase in other expenses?

Allocation of Purchase Price to Land, Building

Commercial property?
Enter 1 Residential property?
Enter 2

These costs appear in the calculations below.

Purchase price of property?

Closing costs to perfect title?

Total cost (basis) of property

Percent of cost (basis) to land?

Basis of land

Basis of building

To
keep this worksheet straightforward, cost segregation, qualified improvement
property, and personal property depreciation are not considered.

Calculated
amounts to produce the results above.

Year

Annual rent

Vacancy rate

Net annual rental income

1st mortgage interest

2nd mortgage interest

Real Estate Taxes

Property management fees

Tenant location fees

Repairs & Maintenance

Property insurance

Utilities on property

One-time costs

Property condo fees

Other

Tax-deductible cash outflows

Depreciation (Building) 27.5
or 39 yr

1st mortgage costs
amortization

2nd mortgage costs
amortization

Net Taxable (Income) Loss

Passive loss (income)

Taxable (income) loss

Tax Rate

Cash inflow (outflow) from
taxes

Accumulation of Passive Losses

Passive loss not deducted for
year

Passive loss deducted

Cumulative passive loss

Remaining taxable income

Nontax Cash outflows (inflows)

1st mortgage principal paid

2nd mortgage principal paid

Down payment

N / A

Balloon payment on 2nd
mortgage

1st mortgage acquisition costs

N / A

2nd mortgage acquisition costs

N / A

Costs to obtain title

N / A

Tax-deductible cash outflows

Net cash benefit from
deductions

Cash outflow (inflow)

Present values of cash
outflows

Cash outflow only

Applicable cash outflow

Present value of applicable
outflow

Cumulative present value

Future value of cash inflows

Cash inflow only

Applicable cash inflow

Future value of applicable
inflow

Cumulative future value

Add net cash from sale of
property

Less taxes on sale of property

Add
benefit of unused passive losses and unamortized expenses

Net cumulative future value

Cash
proceeds from sale of property

Selling price of property

Selling expenses and closing

Net sales proceeds

Payoff second mortgage

Payoff first mortgage

Net cash from sale

Adjusted basis

Purchase price

Cost to obtain title

Less depreciation

Adjusted basis day of sale

Unused deductions

Cumulative unused passive
losses

1st mortgage unamortized costs

2nd mortgage unamortized costs

Total

Ordinary tax rate

Year of sale cash benefit

Gain or loss on sale

Net sales proceeds

Adjusted basis day of sale

Gain (loss)

Taxes on sale

Unrecaptured 1250 gain

Tax Rate on uncaptured 1250
gain

Federal tax on 1250 gain

This is the tax you pay
on the amount of the gain attributable to straight-line depreciation.

Capital
gain

Federal tax on capital gain

State tax on capital gain

Income taxes on sale of
property

Draw
down of amortizable mortgage costs

1st mortgage acquisition costs

2nd mortgage acquisition costs

Mortgage Amortization

Second Mortgage
Amortization

Principal

Year of balloon payment

Interest

Balloon payment

Years

Payment

Year

Beg/Prin

End/Prin

Pmts

Int.

Prin/Pay

Total

Year

Beg/Prin

End/Prin

Pmts

Int.

Prin/Pay

Total