[surveyor]

tool!

The spreadsheet is ok as a basic tool, but if you are renting portions of your house to renters, you are missing several tax deductions.

1. Depreciation of the portions being rented

(improved value * (2/3) /27.5*0.25/12)

2. Basic utilities (power, water, sewer)

(power + water + sewer + etc)*(2/3)/12

3. Business utilities (telephone, cellphone, internet).

(cellphone + telephone + internet) * (2/3)/12

Using rough numbers, your property is actually costing you about $6/mo.

Make sure to take full advantage of your home! You can probably maximize it further by using the home office tax deduction and using chattel depreciation. I would give you rough numbers on these tax breaks, but they are hard to generalize and requires a lot of study.

Anyways, point is that I think you are actually overpaying your taxes because you’re not counting everything you’re entitled to (because you are technically a landlord).

[surveyor]

tool!

The spreadsheet is ok as a basic tool, but if you are renting portions of your house to renters, you are missing several tax deductions.

1. Depreciation of the portions being rented

(improved value * (2/3) /27.5*0.25/12)

2. Basic utilities (power, water, sewer)

(power + water + sewer + etc)*(2/3)/12

3. Business utilities (telephone, cellphone, internet).

(cellphone + telephone + internet) * (2/3)/12

Using rough numbers, your property is actually costing you about $6/mo.

Make sure to take full advantage of your home! You can probably maximize it further by using the home office tax deduction and using chattel depreciation. I would give you rough numbers on these tax breaks, but they are hard to generalize and requires a lot of study.

Anyways, point is that I think you are actually overpaying your taxes because you’re not counting everything you’re entitled to (because you are technically a landlord).

[surveyor]

tool!

The spreadsheet is ok as a basic tool, but if you are renting portions of your house to renters, you are missing several tax deductions.

1. Depreciation of the portions being rented

(improved value * (2/3) /27.5*0.25/12)

2. Basic utilities (power, water, sewer)

(power + water + sewer + etc)*(2/3)/12

3. Business utilities (telephone, cellphone, internet).

(cellphone + telephone + internet) * (2/3)/12

Using rough numbers, your property is actually costing you about $6/mo.

Make sure to take full advantage of your home! You can probably maximize it further by using the home office tax deduction and using chattel depreciation. I would give you rough numbers on these tax breaks, but they are hard to generalize and requires a lot of study.

Anyways, point is that I think you are actually overpaying your taxes because you’re not counting everything you’re entitled to (because you are technically a landlord).

[surveyor]

tool!

The spreadsheet is ok as a basic tool, but if you are renting portions of your house to renters, you are missing several tax deductions.

1. Depreciation of the portions being rented

(improved value * (2/3) /27.5*0.25/12)

2. Basic utilities (power, water, sewer)

(power + water + sewer + etc)*(2/3)/12

3. Business utilities (telephone, cellphone, internet).

(cellphone + telephone + internet) * (2/3)/12

Using rough numbers, your property is actually costing you about $6/mo.

Make sure to take full advantage of your home! You can probably maximize it further by using the home office tax deduction and using chattel depreciation. I would give you rough numbers on these tax breaks, but they are hard to generalize and requires a lot of study.

Anyways, point is that I think you are actually overpaying your taxes because you’re not counting everything you’re entitled to (because you are technically a landlord).

[surveyor]

frakkin’ lakers…

Oh well. Next season I guess.

Cap rate is the capitalization rate or market value of the property. High cap rates signify higher value properties.

http://en.wikipedia.org/wiki/Cap_rate

As for the ROE, the ROE takes into account a negative cash flow, but when you take into consideration the appreciation and the tax benefit, then even with a negative cash flow, the ROE can give you 12%. I used an appreciation rate of 4% (which assumes the property will be held over a ten year period) and then a simple tax rate (which really depends on who the investor is).

Like I said, a rough calculation. For effective use of your investment money, it is better to choose a property that has an ROE of around 25% or more.

[surveyor]

frakkin’ lakers…

Oh well. Next season I guess.

Cap rate is the capitalization rate or market value of the property. High cap rates signify higher value properties.

http://en.wikipedia.org/wiki/Cap_rate

As for the ROE, the ROE takes into account a negative cash flow, but when you take into consideration the appreciation and the tax benefit, then even with a negative cash flow, the ROE can give you 12%. I used an appreciation rate of 4% (which assumes the property will be held over a ten year period) and then a simple tax rate (which really depends on who the investor is).

Like I said, a rough calculation. For effective use of your investment money, it is better to choose a property that has an ROE of around 25% or more.

[surveyor]

frakkin’ lakers…

Oh well. Next season I guess.

Cap rate is the capitalization rate or market value of the property. High cap rates signify higher value properties.

http://en.wikipedia.org/wiki/Cap_rate

As for the ROE, the ROE takes into account a negative cash flow, but when you take into consideration the appreciation and the tax benefit, then even with a negative cash flow, the ROE can give you 12%. I used an appreciation rate of 4% (which assumes the property will be held over a ten year period) and then a simple tax rate (which really depends on who the investor is).

Like I said, a rough calculation. For effective use of your investment money, it is better to choose a property that has an ROE of around 25% or more.

[surveyor]

frakkin’ lakers…

Oh well. Next season I guess.

Cap rate is the capitalization rate or market value of the property. High cap rates signify higher value properties.

http://en.wikipedia.org/wiki/Cap_rate

As for the ROE, the ROE takes into account a negative cash flow, but when you take into consideration the appreciation and the tax benefit, then even with a negative cash flow, the ROE can give you 12%. I used an appreciation rate of 4% (which assumes the property will be held over a ten year period) and then a simple tax rate (which really depends on who the investor is).

Like I said, a rough calculation. For effective use of your investment money, it is better to choose a property that has an ROE of around 25% or more.

[surveyor]

frakkin’ lakers…

Oh well. Next season I guess.

Cap rate is the capitalization rate or market value of the property. High cap rates signify higher value properties.

http://en.wikipedia.org/wiki/Cap_rate

As for the ROE, the ROE takes into account a negative cash flow, but when you take into consideration the appreciation and the tax benefit, then even with a negative cash flow, the ROE can give you 12%. I used an appreciation rate of 4% (which assumes the property will be held over a ten year period) and then a simple tax rate (which really depends on who the investor is).

Like I said, a rough calculation. For effective use of your investment money, it is better to choose a property that has an ROE of around 25% or more.

[surveyor]

here ya go:

http://piggington.com/surveyors_roe_calculator_available_for_download

I can’t test the link if it still works. My office is blocking it. I’ll test it when I get home…

[surveyor]

here ya go:

http://piggington.com/surveyors_roe_calculator_available_for_download

I can’t test the link if it still works. My office is blocking it. I’ll test it when I get home…

[surveyor]

here ya go:

http://piggington.com/surveyors_roe_calculator_available_for_download

I can’t test the link if it still works. My office is blocking it. I’ll test it when I get home…

[surveyor]

here ya go:

http://piggington.com/surveyors_roe_calculator_available_for_download

I can’t test the link if it still works. My office is blocking it. I’ll test it when I get home…

[surveyor]

here ya go:

http://piggington.com/surveyors_roe_calculator_available_for_download

I can’t test the link if it still works. My office is blocking it. I’ll test it when I get home…

[surveyor]

[quote=LarryTheRenter]Are there any web sites like piggington geared towards those looking to but rental properties??? It might be nice to get some discussions going about multi-unit properties and things like rents, cap rates, cash on cash returns , etc. Also common management issues and the like…

[/quote]

Hahaha. I tried to do it here, but there wasn’t a lot of interest at the time. Although I probably admit it was more because most people weren’t in a buying mood for SFRs and condos, much less multi-units.

I even posted my ROE calculator for people to do cash on cash and cap rate calculations on. Hahaha.

[Author]

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