Adding Expenses & Revenue

Add ongoing expenses and revenue to your proposal.

Figuring out and projecting the ongoing costs of a project is an important part of developing your investment proposal. We try to make this as easy as possible by helping you calculate important high level stats like profit, Cash-On-Cash Return, etc. You can begin adding expenses and revenue by clicking the Add Expenses & Revenue button. Then you can begin adding the following details will be inputs in calculating high level financial details:

• Current Value - This is what you believe the property is currently worth - regardless of how much it is currently being sold for.

• Expected Appreciation Rate - This is how much you expect this property to appreciate every year. We recommend using the average appreciation rate over the last 15 years.

• Expected Rent Growth - This is how much you expect to raise rent every year.

• Renovation Costs - This is how much you expect to spend on initially renovating the property.

• Landlord Insurance - This is how much you expect insurance to cost every year.

• Property Taxes - This is the yearly property tax rate for your property. The tax rate will differ per state and county.

• HOA - Some properties are located in an area that requires you to pay a monthly fee to the homeowners association.

• Property Management - You may want to hire someone or a company to help you manage the property (find tenants, etc.) Typically property management companies charge between 6 - 10% of monthly rent.

• Vacancy Rate - If you are planning on renting out your property, you should expect that for a certain percent of the year it will be vacant and not generating any income.

After you have entered all of those inputs, we will generate a yearly and monthly breakdown that will give you a sense of how much profit (if any) the property will generate.