How to Use this Spreadsheet Step 1: Estimate Rental Income and Expenses Formulas are now the same as cells C50-51. Update - Fixed error associated with cells D50-D51 in scenario B. This one was designed for people who are still learning the basics of rental property investing for cash flow. You can find other spreadsheets that provide a more thorough investment analysis (such as 10-year cash flow projections). Some basic instructions for doing the analysis are included below, but you should also consult your team (accountant, tax advisor, property manager, legal rep, etc.) before making real estate investment decisions. The numbers included in the spreadsheet or in the screenshot above are theoretical examples only and are provided only to help show you how to enter data. Always double-check calculations because you don't want to make an important financial decision only to find out later that you had accidentally overwritten or messed up one of the formulas.įor example, if you add more rows to the operating expenses, double check the formula used to total the expenses to make sure it is summing all of the expenses. This Excel spreadsheet makes things even more simple by providing a convenient way to calculate and compare results.Įdit the cells with the light blue background. The calculations for doing a rental property valuation and cash flow analysis are not very complex.
