surveyor’s ROI spreadsheet

[gn]

I used surveyor’s ROI spreadsheet on some realistic rents in Mira Mesa & some hypothetical home prices. What I found is that prices on a 3bd/2ba would have to be pretty low (i.e. $220k) for the numbers to start penciling out.

For example, I used:

Rent: $1850
Home price: $220k
Down payment: 30% (most lenders require this).

In order to reach the “goals” stated in the spreadsheet:
– ROE > 20%
– Cash on Cash > Interest Rate + 3
The home prices would have to be even lower.

Is this spreadsheet meant for multi-unit properties only ? Am I missing something ?

See the attached spreadsheet.

[an]

Is 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.

[an]

Is 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.

[an]

Is 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.

[an]

Is 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.

[an]

Is 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.

[carlsbadworker]

I 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.

[carlsbadworker]

I 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.

[carlsbadworker]

I 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.

[carlsbadworker]

I 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.

[carlsbadworker]

I 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.

[carlsbadworker]

By 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.

[carlsbadworker]

By 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.

[carlsbadworker]

By 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.

[carlsbadworker]

By 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.

[Author]

Posts