I need to estimate free cash flows and put these cash flows into an NPV analysis for a home I am theoretically buying and putting up on Airbnb. The excel file details all of the costs associated with buying the home and the potential income I could make. To get FCF we use EBIT and do not expense interest on the loan (mortgage) directly - this is done when you use the WACC formula. Please help!
1 House Cost: 69,000 2 Loan term: 30 years 3 Rate: 3.75% APR: 3.832% 4 Property tax: 158/ 3 = 52.66 5 Homeowner's insurance: 349/12=29.08 6 Down Payment: 13980 7 Mortgage: 258 /mth 8 Lender: Penfed Credit Union 10 Closing Costs 11 Origination Charge 12 Appraisal Fee 13 Credit Report Fee 14 Flood Certification 15 Tittle Search and Lender's Title Insurance 16 Home Inspection Test (pest, etc) 17 Postage/Courier 18 Su 19 Attorney, closing and settlement fees 20 Total 21 22 Other Costs 23 Taxes and other Government Fees 24 Prepaid homeowners insurance 25 Pre-paid daily interest chrges 15 days 26 Escorw Homeowner's insurance (2 months) 27 Escrow Property Taxes 3 months 28 Owner's Title Insurance 29 Total 775 434 16 174 63 100 213 380 2160 52 349 86 58 (Placed on reserve, given back after deal) 158 (Placed on reserve, given back after deal) 1053 31 Costs 32 Mortgage: 33 Property tax: 158/ 3 = 34 Homeowner's insurance: 349/12= 35 Supplies 36 Utilities 37 Maintance (landscaping) 38 Advertsing 39 Total 40 41 AirBnB potential income 258 /mth 52.66 29.08 (Cleaning, kitchen, and hygenic) 260 (from suplimental income & loss statement for fresno property) 50 0 (AirBnB, / Craigslist) 4285 /mnth 1 House Cost: 69,000 2 Loan term: 30 years 3 Rate: 3.75% APR: 3.832% 4 Property tax: 158/ 3 = 52.66 5 Homeowner's insurance: 349/12=29.08 6 Down Payment: 13980 7 Mortgage: 258 /mth 8 Lender: Penfed Credit Union 10 Closing Costs 11 Origination Charge 12 Appraisal Fee 13 Credit Report Fee 14 Flood Certification 15 Tittle Search and Lender's Title Insurance 16 Home Inspection Test (pest, etc) 17 Postage/Courier 18 Su 19 Attorney, closing and settlement fees 20 Total 21 22 Other Costs 23 Taxes and other Government Fees 24 Prepaid homeowners insurance 25 Pre-paid daily interest chrges 15 days 26 Escorw Homeowner's insurance (2 months) 27 Escrow Property Taxes 3 months 28 Owner's Title Insurance 29 Total 775 434 16 174 63 100 213 380 2160 52 349 86 58 (Placed on reserve, given back after deal) 158 (Placed on reserve, given back after deal) 1053 31 Costs 32 Mortgage: 33 Property tax: 158/ 3 = 34 Homeowner's insurance: 349/12= 35 Supplies 36 Utilities 37 Maintance (landscaping) 38 Advertsing 39 Total 40 41 AirBnB potential income 258 /mth 52.66 29.08 (Cleaning, kitchen, and hygenic) 260 (from suplimental income & loss statement for fresno property) 50 0 (AirBnB, / Craigslist) 4285 /mnth
