From the course: Real Estate Analysis Foundations
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Single unit rental analysis, part 2 - Microsoft Excel Tutorial
From the course: Real Estate Analysis Foundations
Single unit rental analysis, part 2
- [Instructor] All right, continuing from our example, let's see what happens if we play with some of the assumptions around that rental income property that we've just analyzed. So, here are the results from earlier. And now what do you think would be the biggest assumptions or the biggest drivers of the investment returns? Based on what you see here. Two of them, well, two of the biggest ones will be your purchase price and your sale price, right, and then the other one would be your rents. The rents is quite important as well. I mean those are pretty obvious, right, and then some of these other ones are going to affect your returns but unless you make some really big changes, they're not going to have a drastic impact on your returns, okay. Well, let's look at an example right now. If your renter are, what if the market is not as healthy, right, what if it's, you know, 1,300 to 1,600 is asking, but, really, what people are actually renting out are 1,200. Well, look at the returns…
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