The real estate investor's pocket calculator : simple ways to compute cash flow, value, return, and other key financial measurements

Make sure the numbers add up. With real estate investing on the rebound, more and more people are jumping into the market. But often, return on investment hinges less on the physical property and more on the math. Have you measured every component of value, such as cash flow, income taxes, financing, and investment yield? Do you know which calculations to use on specific properties? Have you weighed all the risks? The Real Estate Investor's Pocket Calculator helps you analyze the financial picture before committing capital. Simple explanations, worksheets, and more than 100 Excel formulas will have you crunching numbers like a pro. Learn to: Gauge supply and demand * Project return on investment and equity * Analyze present and future value * Understand appraisal approaches * Evaluate mortgages * Calculate cash flow * Compute internal rate of return and debt coverage ratio * Make accurate tax projections * Balance escrow and closing * And much more With new formulas, expanded sections on income and expenses, and an updated analysis of market conditions, this second edition helps you make smarter decisions . . . and more money. With real estate investing on the rebound, more and more people are jumping into the market. But not everyone is finding equal amounts of success. Why do some investments turn into gold mines and some into money pits? Oftentimes, the return on investment hinges less on the physical property and more on the math. If they had taken the right measures beforehand, they would’ve realized that the numbers just didn’t add up. Before your next real estate investment, you need to ask things like: Have you measured every component of value, such as cash flow, income taxes, financing, and investment yield? Do you know which calculations to use on specific properties? Have you weighed all the risks? The Real Estate Investor’s Pocket Calculator helps you analyze the financial picture before shoveling out the money. Simple explanations, worksheets, and more than 100 Excel formulas will have you crunching numbers like a pro. Just like the professionals, you will learn how to:• Gauge supply and demand• Project return on investment and equity• Analyze present and future value• Calculate cash flow• Make accurate tax projections• And more--before you commit capital!Fewer mistakes and less guess work. Larger returns and even more opportunities for additional investments . . . It’s all possible now with the help of this invaluable resource! The return on real estate investments hinges less on the physical property and more on the math. This invaluable resource helps you analyze the financial picture before shoveling out the money. With real estate investing on the rebound, more people are jumping into the market, although not everyone is finding equal amounts of success. Why do some investments turn into gold mines and some into money pits? If they had taken the right measures beforehand, they would've realized that the numbers just didn't add up. Before your next real estate investment, you need to ask things like: Have you measured every component of value, such as cash flow, income taxes, financing, and investment yield? Do you know which calculations to use on specific properties? Have you weighed all the risks? In The Real Estate Investor's Pocket Calculator, finance expert and author Michael C. Thomsett shows you how to: Gauge supply and demand Project return on investment and equity Analyze present and future value Calculate cash flow Make accurate tax projections Fewer mistakes and less guess work. Larger returns and even more opportunities for additional investments. It's all possible now with the help of The Real Estate Investor's Pocket Calculator! Contents Introduction: Beyond the Basic Calculation vii CHAPTER 1 Valuation of Property: The Starting Point 1 CHAPTER 2 How the Numbers Are Manipulated in Appraisals 29 CHAPTER 3 Your Mortgage: The Real Cost of Buying Property 47 CHAPTER 4 Investment Calculations: What Is Your Yield? 79 CHAPTER 5 The Lease Option: The Leveraged Approach 99 CHAPTER 6 Rental Income: Cash Flow Essentials 109 CHAPTER 7 Investment Alternatives: Equity and Debt 125 CHAPTER 8 Bookkeeping and Financial Statements: Debits, Credits, and More 139 CHAPTER 9 Prorated Values in Finance and Taxes: Important Guidelines 161 CHAPTER 10 Escrow and Closing: Getting Both Sides in Balance 179 CHAPTER 11 Tax Calculations in Real Estate: Reporting Rules 195 CHAPTER 12 Land, Lot, and Building Measurements: Calculating Down to the Foot 211 APPENDIX A Conversion: Simple Rules, Easy Answers 233 APPENDIX B Real Estate Formulas: Summarizing the Essentials 238 APPENDIX C Excel Formulas: Simplifying the Calculations 248 APPENDIX D Amortization Tables: Monthly Payments 256 APPENDIX E Remaining Balance Tables: What Is Left to Pay 258 Glossary 263 Index 271 "Make sure the numbers add up. With real estate investing on the rebound, more and more people are jumping into the market. But often, return on investment hinges less on the physical property and more on the math. Have you measured every component of value, such as cash flow, income taxes, financing, and investment yield? Do you know which calculations to use on specific properties? Have you weighed all the risks? The Real Estate Investor's Pocket Calculator helps you analyze the financial picture before committing capital. Simple explanations, worksheets, and more than 100 Excel formulas will have you crunching numbers like a pro."--Publisher's description The Real Estate Investor's Pocket Calculator helps you analyze the financial picture before committing capital to real estate investments. Simple explanations, worksheets, and more than 100 Excel formulas will have you crunching numbers like a pro. With new formulas, expanded sections on income and expenses, and an updated analysis of market conditions, this second edition helps you make smarter decisions ... and more money **Make sure the numbers add up.** **__The Real Estate Investor's Pocket Calculator__** helps you analyze the financial picture before committing capital. Simple explanations, worksheets, and more than 100 Excel formulas will have you crunching numbers like a pro. Learn to: Your next real estate investment doesn’t have to be so risky. Learn how to crunch the right numbers before you commit capital.