can you map out in Excel a 10-year pro forma valuation of this house pictured on the MLS to include the expected return on the property, holding period, IRR over the holding period, cap rate, etc?

 

Image transcription text

Pro-Forma & Returns Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Income Rental Income $ 18,000 $ 18,540 $ 19,096 $ 19,669 $ 20,259 $ 20,867 $ 21,493 $ 22,138 $ 22,802 $ 23,486 Expenses Maintenance/Improvements S 286 $ 295 $ 304 $ 313 $ 322 $ 332 $ 342 $ 352 $ 363 $ 374 Property Taxes 1,571 1,618 1,666 1,716 1,768 1,821 1.875 1,932 1,990 2,049 Property Insurance 677.53 697.86 718.80 740.36 762.57 785.45 809.01 833.28 858.28 884.03 Vacancy Expense 307.97 317.21 326.73 336.53 346.62 357.02 367.73 378.76 390.13 401.83 Total Expenses 2,535 2,611 2,689 2,770 2,853 2,938 3,026 3,117 3,211 3,307 Net Operating Income 15,465 $ 15,929 $ 16,407 $ 16,899 $ 17,406 $ 17,929 $ 18,467 $ 19,020 $ 19,591 $ 20,179 Debt Repayment Schedule Outstanding Balance 239,200 $231,226.67 $223,253.33 $215,280.00 $207,306.67 $199,333.33 $191,360.00 $183,386.67 $175,413.33 $167,440.00 $159,466.67 Equity Value 59,800 67,773 75,747 83,720 91,693 99,667 107,640 115,613 123,587 131,560 139,533 Annual Debt Service $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 $15,119.70 Cash Flow -59,800 $ 345.71 $ 809.67 $ 1,287.55 $ 1,779.77 $ 2,286.75 $ 2,808.94 $ 3,346.80 $ 3,900.80 $ 4,471.41 $ 5,059.15 Property Appreciation 299,000 307,970 317,209 326,725 336,527 346,623 357,022 367,732 378,764 390,127 401,831 Closing Costs 20,091.55 Debt, Outstanding Balance 159466.6667 Net Proceeds $ 222,272.78 Cap Rate 5.17%% 5.33% 5.49% 5.65% 5.82% 6.00% 6.18% 6.36% 6.55% 6.75% Cash on Cash 0.58% 1.35% 2.15% 2.98% 3.82% 4.70% 5.60% 6.52% 7.48% 8.46% IRR 14.65% 

I have provided an example sheet of what I mean and a link to the house on the MLS

https://www.utahrealestate.com/1969139?st_id=196107180&actor=79255

Answer rating: 100% (QA)

Based on the provided data here are some observations 1 Income and Expenses Rental income is project... View the full answer