Zoho Sheet

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52


REAL ESTATE VALUATION METHODS				11/03/2006

1. Replacement Cost (Price Per Square Foot)			3. Appreciation Extrapolation

Asking/Offer Price	$400,000		Fair Value Price	$195,000
Total Square Feet	1972		Fair Value Year	1994
Asking/Offer Price Per Square Foot	$203		Current Year	2006
Price Per Square Foot of New Construction (Average is $115)	$115		Years of Appreciation	12
Lot Land Cost of New Construction (If Not Already Included)	$30,000		Annual Appreciation % (3.5% Historical)	3.5%
New Construction Price Total	$256,780		Offer Price	$294,658
Asking/Offer Price vs. New Construction Price $	$143,220
Asking/Offer Price vs. New Construction Price %	156%		4. Assessed Value Plus Margin

2. Rental (Cash Flow, Return on Price, Price/Earnings Ratio)			Assessed Value	$125,000
			Margin % (15% Typical)	15%
Cost	Monthly	Annual	Offer Price	$143,750
Mortgage	$2,000	$24,000
Taxes	$100	$1,200	5. Redbrick's Formula - (Annual Gross Rent / 2) / Price = Yield
HOA Fees	$100	$1,200
Insurance	$100	$1,200	Monthly Rent (Gross)	$2,000
Repairs/Maintenance	$100	$1,200	Annual Rent (Gross)	$24,000
Utilities	$100	$1,200	Price	$400,000
Other (Vacancy/Collection Loss, Management, etc.)	$100	$1,200	Yield (Target is 5% to 7% or More)	3.00%
TVM Loss on Down Payment	$83	$1,000	* 1/2 Rent = Expenses.
Total	$2,683	$32,200	* Works best for properties under $250,000.
Monthly Rent (Gross)	$2,500	$30,000
Net Cash Flow	$(183)	$(2,200)

Price	$400,000
Return on Price (Annual Cash Flow / Price) (Target is 5% to 7% or More)	-0.55%
Price/Earnings Ratio (Monthly) (Target is 240 to 1)	-2181.82
Price/Earnings Ratio (Annual) (Target is 20 to 1)	-181.82

Price	$400,000
Price/Rent Ratio (Monthly) (Target is 150 to 1)	200.00
Price/Rent Ratio (Annual) (Target is 12 to 1)	16.67

Sheet1

Sheet2

Sheet3