This Investment Analysis tool will create a detailed Discounted Cash Flow (DCF) Analysis Report for 5 years.
The analysis will project the cash flow over a 5-year investment holding period, calculating the annual cash flow from operations for each year as well as the estimated sales proceeds at the end of the 5 year holding period.
This report will be provided to you as PDF file, available for you to quickly save, print and email.
Instructions on entering the information:
Purchase Price: The dollar amount ($) of the initial purchase price of the property
Year 1 Gross Income: Total dollar amount ($) of all rental income, based on 100% occupancy. Please enter the total ANNUAL income.
Year 1 NOI: Total dollar amount ($) of Net Operating Income on the property after vacancy and operating expenses. This does not include loan payments. Please enter the total ANNUAL income.
Loan Amount: Enter the dollar amount ($) or percentage (%) of the initial loan amount when purchasing the property. If you enter a number less than 100, then the loan amount will be calculated as percentage of the initial purchase price.
Loan Rate: Enter the annual percentage (%) rate of interest paid on the loan.
Loan Amortization: Enter the number of years the loan will be amortized.
Cap Rate at Sale: Enter the projected capitalization rate the property will be sold at the end of the holding period. This is a percentage (%) of the property in order to obtain the projected sales price at EOY 5 for the 5-year report. Projected sales price is calculated based on Year 6 NOI divided by Cap Rate percentage.
Advanced Fields for the Investment Analysis Tool (added under the peel up section: tap Advanced to open)
Annual Income Increase: Enter the percentage (%) the income is estimated to increase per year.
Annual Expense Increase: Enter the percentage (%) the expense is estimated to increase per year.
Loan Fees & Points: Enter percentage (%) of loan fees associated with obtaining a loan for the property. (default 1%)
Cost of Sale upon Disposition: Enter the cost of percentage (%) of sales price or dollar amount ($) of closing costs incurred by the seller, including all closing fees. Enter a number between 1-99 for percentage (%) of sale price for cost of sale. Entry of 100 or greater will be used as actual dollar amount (%) of closing costs at sale. (default 5%)