I have the info on the houses listed in excel just need help calculating out the rest of the values in excel. Take your time thank you!
You are considering purchasing a house in the 48910 zip code, in Lansing, for graduate student rental. Use zillow.com to locate two homes, each with the following features: 3 bedrooms or more, 1.5 bathrooms or more, basement, parking for 3 vehicles (it is a good idea to drive past the properties you are considering to verify adequa parking and condition). Do an investment analysis for each of the homes. The houses you select to evaluate should be ready to rent as soon as you close the sale. No expenditures for painting, roofing, carpet, etc. Include the addresses for the properties you select. For this exercise, assume that if the outside of the house is in good condition, the inside will be as well Financing: assume you will pay the asking prices and your lender has a 75% LVR for income property, i = 5.06% compounded monthly, CPM to be paid over 25 years, and closing costs are 4.45% of the mortgage amount which includes points. Mortgage will have a due on sale clause. Your plan is to sell each house at the end of the 5th year with appreciation estimated to occur at the rate of 6.00% per year, compounded annually. Selling expenses are estimated to be 10% (broker's fee + other expenses) not including capital gains and income taxes. Your analysis indicates that you should have 3 student tenants, each paying $772.00 per month with rents to increase at the rate of 4% per year for the 5year holding period. Each tenant will be offered, and they will sign, 12 month leases (Jan. 2019 through Dec. 2019). The vacancy rate is expected to be 5.5%, maintenance and repairs are expected to be 2% of gross potential income, legal and accounting fees are estimated to be 0.97% of gross potential income, laundry facility income $550 per year (coin operated washer and dryer), adjustments to rent $242 per year your marginal tax rate is 28%, you will pay 100% of the property taxes in January each year, all utilities will be paid by the tenants, and property taxes are expected to increase at the rate of 1.25% per year for the 5 year holding period starting with the second year of ownership. Also in your analysis, include whether your rental rates are competitive or the 48910 zip code. Include 4 or more photos of each house in a separate tab labeled "Photographs (2+)" First year outputs: should include, DCR (debt coverage ratio), BER (break even ratio), and the OER (operating expense ratio) Additional first through fifth year annual outputs: should include Effective Gross Income, Expenses BTCFo and ATCEo, and income taxes. Don't forget property taxes, depreciation, and income taxes due in each of the years. BTCFs and ATCFs should be calculated as well at the end of the 5th year Calculate, then partition the PV BTCFo and the PV BTCFs at the conclusion of the 5th year using your required discount rate of 10%. Also, how much money will you have after the sale, in 5 years, after you pay selling expenses, income taxes, your mortgage, and capital gains taxes All calculations are to be completed within Excel- do not use Excel as a word processor. Do not use vour You are considering purchasing a house in the 48910 zip code, in Lansing, for graduate student rental. Use zillow.com to locate two homes, each with the following features: 3 bedrooms or more, 1.5 bathrooms or more, basement, parking for 3 vehicles (it is a good idea to drive past the properties you are considering to verify adequa parking and condition). Do an investment analysis for each of the homes. The houses you select to evaluate should be ready to rent as soon as you close the sale. No expenditures for painting, roofing, carpet, etc. Include the addresses for the properties you select. For this exercise, assume that if the outside of the house is in good condition, the inside will be as well Financing: assume you will pay the asking prices and your lender has a 75% LVR for income property, i = 5.06% compounded monthly, CPM to be paid over 25 years, and closing costs are 4.45% of the mortgage amount which includes points. Mortgage will have a due on sale clause. Your plan is to sell each house at the end of the 5th year with appreciation estimated to occur at the rate of 6.00% per year, compounded annually. Selling expenses are estimated to be 10% (broker's fee + other expenses) not including capital gains and income taxes. Your analysis indicates that you should have 3 student tenants, each paying $772.00 per month with rents to increase at the rate of 4% per year for the 5year holding period. Each tenant will be offered, and they will sign, 12 month leases (Jan. 2019 through Dec. 2019). The vacancy rate is expected to be 5.5%, maintenance and repairs are expected to be 2% of gross potential income, legal and accounting fees are estimated to be 0.97% of gross potential income, laundry facility income $550 per year (coin operated washer and dryer), adjustments to rent $242 per year your marginal tax rate is 28%, you will pay 100% of the property taxes in January each year, all utilities will be paid by the tenants, and property taxes are expected to increase at the rate of 1.25% per year for the 5 year holding period starting with the second year of ownership. Also in your analysis, include whether your rental rates are competitive or the 48910 zip code. Include 4 or more photos of each house in a separate tab labeled "Photographs (2+)" First year outputs: should include, DCR (debt coverage ratio), BER (break even ratio), and the OER (operating expense ratio) Additional first through fifth year annual outputs: should include Effective Gross Income, Expenses BTCFo and ATCEo, and income taxes. Don't forget property taxes, depreciation, and income taxes due in each of the years. BTCFs and ATCFs should be calculated as well at the end of the 5th year Calculate, then partition the PV BTCFo and the PV BTCFs at the conclusion of the 5th year using your required discount rate of 10%. Also, how much money will you have after the sale, in 5 years, after you pay selling expenses, income taxes, your mortgage, and capital gains taxes All calculations are to be completed within Excel- do not use Excel as a word processor. Do not use vour
