Enter a property’s price, rent, costs and mortgage. The sheet shows effective income, net operating income, cap rate, cash flow and cash-on-cash return as entered, with rent 10 percent lower and with one major repair, plus depreciation, six months of reserves and the 1031 exchange dates.
Deal sheet
| As entered | Rent 10% lower | Plus one repair |
|---|
- Depreciation, building onlyHow depreciation works →
- Reserves, six monthsWhat lenders look for →
Arithmetic only, on numbers you enter; nothing is sent anywhere. The starting numbers are the hypothetical duplex from Rental Property Math: Cash Flow, NOI and Cap Rate Explained, not typical figures. Not investment or tax advice.
How to read the sheet
As entered uses your numbers. Rent 10% lower cuts the monthly rent by a tenth and applies the same vacancy allowance. Plus one repair adds the repair you entered to a single year’s operating costs, the way a furnace or roof arrives. If a deal only works in the first column, it does not really work. The formulas are explained in Rental Property Math: Cash Flow, NOI and Cap Rate Explained.
Operating costs are the costs of running the property: taxes, insurance, repairs, management, utilities the owner pays and a reserve for things that wear out. They do not include the mortgage. Cash you put in is the down payment plus closing costs and any money spent before the first tenant moves in.
Depreciation appears only when you enter a land value, because the IRS does not let you depreciate land. The sheet divides the building’s share of the price by 27.5 years. Your real basis can also include some settlement fees and closing costs, and the first year is prorated under the mid-month convention. See Rental Property Taxes: Income, Deductions, Depreciation and Losses.
Reserves follow Fannie Mae’s method: months of the full payment of principal, interest, taxes, insurance and association dues. Six months is its general requirement for an investment property loan in automated underwriting; your lender’s rules may differ. See Financing an Investment Property: What Lenders Look For.
The 1031 clock counts from the date you transfer the property you give up: identify the replacement within 45 days, receive it within 180 days or by your tax return due date with extensions, whichever is earlier. Both periods start on the same day. See 1031 Exchanges Explained: Deferring Tax When You Trade Up.
The Deal check only does arithmetic on what you type. It does not know local rents, prices, rates or taxes, it is not investment or tax advice, and nothing you enter leaves your browser.