Rent vs Own and excel calculations

Property Information							Loan information
Purchase Price	$ 300,000.00						Loan-to-value (LTV)	80%
Initial Rent	$ 2,000.00						Loan amount	$ 240,000.00
Rental growth rate	5.0%						Interest rate	6.00%
Property value growth rate	12.0%						Loan term	360
Insurance	$ 750.00						Loan payment	$1,438.92
Maintenance	$ 1,500.00						Annual debt service payment	$17,267.06
Expense growth	3.0%						Annual loan constant	7.19%
Marginal tax rate							Equity investment/down payment
Property tax as % of value	0.43%						Selling expenses (%)
							Closing Costs	$ 5,000.00
End of Year	0	1	2	3	4	5
Annual Loan Schedule
Mo. Payments
Loan Balance
Interest (year)
Amortization (year)
Property Data
Property value
Rents
Cash Flow Analysis
Before-tax cash flow - owner
1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage payments
Total Cash outflow
Tax deductions - owner
1. Property taxes
2. Interest
Total deductions
Tax savings
Renter status
1. Rents
Net cash flows - owner
1. Before-tax outflows
2. Tax savings
3. After-tax cash flow
4. Rent saved
5. After-tax CF - owning
Before-tax CF for sales
1. Property value
2. Less: Selling expenses
3. Less: Mortgage payoff
4. Before-tax CF sale
After-tax CF for sales
1. Property value
2. Less: Selling expenses
3. Less: Basis
4. Gain on sale
5: Less: Exclusion
6. Tax
7. After-tax CF
After-tax IRR on equity of sold