Home › Forums › Financial Markets/Economics › surveyor’s ROI spreadsheet
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surveyor.
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August 19, 2008 at 12:52 PM #13612August 19, 2008 at 1:08 PM #258781
an
ParticipantIs 20% ROE the right expectation? Personally, I think it seems high. Especially considering most other type of investments are returning much less than that, unless you want to take major risks. if you get 20% ROE from day one, that % can only grow as rent price appreciate.
August 19, 2008 at 1:08 PM #258971ParticipantIs 20% ROE the right expectation? Personally, I think it seems high. Especially considering most other type of investments are returning much less than that, unless you want to take major risks. if you get 20% ROE from day one, that % can only grow as rent price appreciate.
August 19, 2008 at 1:08 PM #258983ParticipantIs 20% ROE the right expectation? Personally, I think it seems high. Especially considering most other type of investments are returning much less than that, unless you want to take major risks. if you get 20% ROE from day one, that % can only grow as rent price appreciate.
August 19, 2008 at 1:08 PM #259032ParticipantIs 20% ROE the right expectation? Personally, I think it seems high. Especially considering most other type of investments are returning much less than that, unless you want to take major risks. if you get 20% ROE from day one, that % can only grow as rent price appreciate.
August 19, 2008 at 1:08 PM #259073ParticipantIs 20% ROE the right expectation? Personally, I think it seems high. Especially considering most other type of investments are returning much less than that, unless you want to take major risks. if you get 20% ROE from day one, that % can only grow as rent price appreciate.
August 19, 2008 at 4:30 PM #258815carlsbadworker
ParticipantI think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.August 19, 2008 at 4:30 PM #259006ParticipantI think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.August 19, 2008 at 4:30 PM #259019ParticipantI think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.August 19, 2008 at 4:30 PM #259067ParticipantI think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.August 19, 2008 at 4:30 PM #259108ParticipantI think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.August 19, 2008 at 4:36 PM #258820ParticipantBy the way, the interest rate is also a little bit higher than the current market price.
Personally, I find temeculaguy’s simple formula much easier: if the house price is rent x 100, it is a nobrainer; if it is rent x 125, look really hard; and if it is rent x 150 or above, it is still in its bubble price.August 19, 2008 at 4:36 PM #259011ParticipantBy the way, the interest rate is also a little bit higher than the current market price.
Personally, I find temeculaguy’s simple formula much easier: if the house price is rent x 100, it is a nobrainer; if it is rent x 125, look really hard; and if it is rent x 150 or above, it is still in its bubble price.August 19, 2008 at 4:36 PM #259024ParticipantBy the way, the interest rate is also a little bit higher than the current market price.
Personally, I find temeculaguy’s simple formula much easier: if the house price is rent x 100, it is a nobrainer; if it is rent x 125, look really hard; and if it is rent x 150 or above, it is still in its bubble price.August 19, 2008 at 4:36 PM #259072ParticipantBy the way, the interest rate is also a little bit higher than the current market price.
Personally, I find temeculaguy’s simple formula much easier: if the house price is rent x 100, it is a nobrainer; if it is rent x 125, look really hard; and if it is rent x 150 or above, it is still in its bubble price. -
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