Plug in the current numbers and then you can go back and plug in the additional units for the new value. You can also plug in rent & expense escalations and other variables.
It will then give you the key metrics like CAP, cash on cash, and others plus a 25 year annual cash flow projection.
I just put it up so if there are any mistakes you see or improvements you would like me to make let me know.
Thanks for responding Ray, now im just wondering about when I increase the value by renting out the other vacant apartments.
Here is what we have so far…
13 units occupied x $400 per month = $5200 x 12 = $62400 gross income
Estimate expenses at 40% of gross = $24960
NOI = $37440
Valuation at a 10% cap rate = $37440/10% = $374,400
Lets add this in…
If I get the other 7 units all rented out at $400 each plus the tenants will be paying gas and electric. My expenses would increase for water and sewage.
Now is the new value on the property going to be $400 X 7 units = $2800 gross per month minus the water and sewage which should be about $40 for each apartment.
$2800-($40 x 7= $280) WHICH NOW GIVES us $2520 per month.
$2520 X 12 months = $30,240
$30,240 X 10 years = $302,400
Is $302,400 the new added gross value on this property? Or do I have to subtract 40% for expenses???