REAL ESTATE CALCULATORS(More Info)

 
Example Report
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You have selected to run a five year forecast of a rental property. This model / calculator will help you estimate the value of your property over a five year period based on what you perceive to be the annualized future change in real estate values. The tax consequences of selling your rental property in any of those years and the net proceeds after 1) deducting your first and second mortgages, 2) deducting any possible capital gains taxes, 3) deducting any real estate broker fees and 4) deducting any depreciation recapture taxes, will be determined.

In order to calculate any capital gains taxes you need to determine your cost basis. Select the appropriate model from the below drop down menu. In selecting from the drop down menu determine whether you would like to run only a five year forecast of your annual expenses or a five year forecast of your property value as well. Select whether you already own the property or you are consider acquiring the property. You will be prompted to input the required information.

If you would prefer to determine the same results for a non rental property or a part rental / part non rental property, then click "5 year forecast" from the above menu. This will take you to a drop down menu where you can select your desired property classification.

Of particular benefit of this analysis is the determination of your net equity in the property after deducting any remaining mortgage balance on your first and second mortgages. Your first and second mortgages will be amortized according to the mortgage information you enter.

 
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Real Estate Calculators / Five Year Forecast / Rental Property
 
PROCEEDS FROM SALE
 
Closing
Year 1
Year 2
Year 3
Year 4
Year 5
Value
500,000
510,000
520,200
530,604
541,216
552,040
Mortgage (First)
360,000
355,682
351,092
346,213
341,026
335,512
Mortgage (Second)
80,000
79,040
78,019
76,934
75,782
74,558
Equity
60,000
75,278
91,089
107,457
124,408
141,970
Real Estate Brokers Fees @ 4.50%
N/A
22,950
23,409
23,877
24,355
24,842
Proceeds After Mort. and R.E. Fees
N/A
52,328
67,680
83,580
100,053
117,128
Total Estimated Deferred Tax Liab.
N/A
645
6,249
11,894
17,582
23,315
Net Proceeds After Taxes
N/A
51,683
61,431
71,686
82,471
93,813
INCOME STATEMENT
 
Closing
Year 1
Year 2
Year 3
Year 4
Year 5
Rent
N/A
30,000
30,900
31,827
32,782
33,765
Real Estate Taxes
N/A
7,500
7,800
8,112
8,436
8,773

Mortgage Interest (First)

N/A
21,930
21,658
21,369
21,062
20,735

Mortgage Interest (Second)

N/A
4,873
4,813
4,749
4,680
4,608
Maintenance
N/A
4,500
4,725
4,961
5,209
5,469
P/L Before Depreciation
N/A
-8,803
-8,096
-7,364
-6,605
-5,819
Depreciation
N/A
10,909
10,909
10,909
10,909
10,909
P/L Before Taxes
N/A
-19,712
-19,005
-18,273
-17,514
-16,728
Prior Year Loss Carryforward
N/A
0
0
0
0
0
P/L Before Taxes Adjusted for
Prior Year Loss Carryforward
N/A
-19,712
-19,005
-18,273
-17,514
-16,728
Income Tax Adjustment
Rental YES @ 30.00%
N/A
-5,914
-5,702
-5,482
-5,254
-5,018
P/L After Taxes
N/A
-13,798
-13,304
-12,791
-12,260
-11,710
STATEMENT OF CASH FLOWS
 
Closing
Year 1
Year 2
Year 3
Year 4
Year 5
P/L After Taxes
N/A
-13,798
-13,304
-12,791
-12,260
-11,710
ADDITIONS:
N/A
          
Depreciation
N/A
10,909
10,909
10,909
10,909
10,909
SUBTRACTIONS:
N/A
          
Mortgage Principal (First)
N/A
4,319
4,591
4,880
5,187
5,514
Mortgage Principal (Second)
N/A
960
1,020
1,085
1,153
1,225
Cash Flow
N/A
-8,168
-8,005
-7,846
-7,691
-7,540
PROPERTY BASIS
 
Closing
Year 1
Year 2
Year 3
Year 4
Year 5
Value
500,000
510,000
520,200
530,604
541,216
552,040
Less Cost Basis (Purcahse Price)
400,000
400,000
400,000
400,000
400,000
400,000
Less Cost Basis (Rehab Costs)
100,000
100,000
100,000
100,000
100,000
100,000
Less R.E. Brokers Fees @ 4.50%
N/A
22,950
23,409
23,877
24,355
24,842
Long Term Capital Gain/Loss
N/A
-12,950
-3,209
6,727
16,861
27,198
Accumulated Depreciation
N/A
10,909
21,818
32,727
43,636
54,545
DEFERRED TAXES
 
Closing
Year 1
Year 2
Year 3
Year 4
Year 5
Fed. LT Capital Gains Tax @ 15.00%
N/A
-1,942
-481
1,009
2,529
4,080
State Capital Gains Tax @ 6.85%
N/A
-887
-220
461
1,155
1,863
Fed. Depr. Recapture @ 25.00%
N/A
2,727
5,455
8,182
10,909
13,636
State Depr. Recapture @ 6.85%
N/A
747
1,495
2,242
2,989
3,736
Total Estimated Deferred Tax Liab.
Before Adj. For Any Loss Carryforward
N/A
645
6,249
11,894
17,582
23,315
Loss Carryforward
N/A
0
0
0
0
0
Estimated Offset To Tax Liab. Due To
Loss Carryforward @ (15.00% + 6.85%)
N/A
0
0
0
0
0
Total Estimated Deferred Tax Liab.
N/A
645
6,249
11,894
17,582
23,315

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