Homebucks · investment property analysis

Investors Get Richer

Enter a property, the loan, its carrying costs and the rent. You'll get the first-year cash picture, then a year-by-year look at cash flow, the tax benefit of depreciation, equity, and return on the cash invested.

Property data

The property, the purchase, and the loan.

Location

Street address

ZIP code

City, state and county fill in from the ZIP.

State

City

County

Purchase & loan

Estimated purchase price

Down payment

Override down payment dollars

Interest rate

Loan term

Calculated loan amount

Monthly principal & interest

Recurring property expenses

Taxes, insurance and maintenance are annual figures shown at 1/12 per month. HOA and utilities are monthly.

Property taxes (% of price per year)

Override annual property tax

$/yr

Homeowners insurance (% of price per year)

Override annual insurance

$/yr

Maintenance & repairs (% of price per year)

Override annual maintenance & repairs

$/yr

HOA dues

$/mo

Utilities (optional)

$/mo

Leave at 0 if the tenant pays them.

Total recurring property expensesTaxes + insurance + maintenance + HOA + utilities $0/mo

Total monthly cost of ownershipPrincipal & interest + taxes + insurance + maintenance + HOA + utilities $0/mo

Property value breakdown estimate

Land can't be depreciated, so the lot comes out first. What's left is the value of the improvements.

Land vs. improvements

Purchase price

Estimated value of the lot

Value of improvements

Purchase price minus lot value.

Do you wish to do segmented depreciation?

Segmented (cost-segregation) depreciation pulls a share of the improvements into short-life categories that can be deducted in year one. The rest is depreciated over 27.5 years.

Initial segmented depreciation (% of improvements)

Override segmented depreciation amount

Estimated depreciable basis after segmented depreciation

Tax picture & growth

State of residence

Filing status

Estimated current-year adjusted gross income

Investor's combined tax bracket

Override combined tax bracket

Annual property appreciation

National long-run average is commonly cited around 3–4%/year.

Day-one reserve account

Segmented depreciation × tax bracket: the approximate tax savings, set aside as the property's operating reserve.

Rental income

What the property brings in, and how fast that grows.

First year / month one rental income

$/mo

Annual rent increase

Year 2 rent

Rent rises by this percentage every year in the analysis below.

First-year summary

The transaction before closing costs, with year 10 alongside for comparison.

Cash investment (down payment)

Loan amount

Monthly	Year 1	Year 10

Investment analysis

Pick a hold period to see where the investor stands at the end of it.

Hold the property for

Taxes, insurance, maintenance and utilities rise 5%/year. HOA and principal & interest stay flat.

Prepayment strategies

Identify an advanced prepayment of principal and the impact on your investment return.

Pay off loan in one lump sum at the end of year

Approximate dollars needed to pay off

—

Choose a year above to see the loan balance due.

Apply excess reserves to loan balance to accelerate equity building

At the end of each year, anything in the reserve account above the minimum you keep goes toward the loan balance. The monthly payment is not recast, so the loan pays off sooner. These dollars come from the property's own cash flow, not new money from the investor.

Net equity

Estimated value minus loan balance.

Estimated property value$0

Loan balance$0

Down payment$0

Principal paid down$0

Appreciation$0

Reserve account

Day-one tax savings, plus every year's cash flow and ongoing tax effect. If it runs dry, the owner covers the shortfall.

Day-one segmented tax savings$0

Cumulative cash flow$0

Ongoing depreciation tax effect$0

Cumulative cash flow

Rent minus total cost of ownership, summed.

Total rent collected$0

Total cost of ownership$0

Total depreciation taken$0

Total cash invested

Down payment plus any other cash the owner puts in.

Down payment$0

Cash added to cover shortfalls$0

Lump-sum loan payoff$0

Total equity + cash at end of investment

Net equity plus the reserve account: what the investor holds at the end of the hold period.

Net equity$0

Reserve account$0

Return on investment

Total return divided by the cash invested (down payment).

Total return$0

Annualized (IRR)0%

Equity gained$0

Reserve account$0

Year	Cash flow + tax	Equity growth	Annual return	% of cash in	Running ROI

Total return = equity gained (principal paid down + appreciation) + the reserve account (tax savings + cash flow). ROI divides it by total cash invested: the down payment, any cash the owner adds when the reserve account runs dry, and any lump-sum payoff. It is shown before closing costs and before any sale.

Investors Get Richer · year-by-year

Investment analysis

	Income & total cost of ownership								Cash flow		Depreciation & reserve			Equity						Return
Year	Rental income	Principal & interest	Property taxes	Insurance	Maintenance & repairs	HOA	Utilities	Total cost of ownership	Net cash flow	Running total	Depreciation expense	Tax effect	Reserve account	Est. property value	Lump-sum payoff	Reserves applied to principal	Loan balance	Net equity	Equity gained	Running ROI

Tax effect = (rent − interest − taxes − insurance − maintenance − HOA − utilities − depreciation) × tax bracket, shown as a savings when positive. The year-one segmented deduction is counted on day zero as the starting reserve. Excess reserves applied to principal move money from the reserve account into equity; they are not new cash from the investor. If the reserve account runs dry, the owner covers the shortfall and that counts as cash invested. Running ROI = (equity gained + reserve account) ÷ cash invested (down payment, shortfalls covered by the owner, and any lump-sum payoff).