WEBVTT

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Rent is monthly.

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Taxes and insurance are annual.

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Mixing those units can make

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a deal look much better

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than it is.

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In Property Inputs, our

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fictional example uses 3,500

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dollars in monthly rent,

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4,500 a year in taxes,

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and 2,200 a year for

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insurance.

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Do not enter a monthly

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escrow payment in an annual

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field.

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Separate taxes and insurance

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from principal and interest so

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you do not count them

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twice.

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Maintenance, management and

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CapEx are percentages of

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effective gross income.

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Enter 5 for 5 percent.

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In this example,

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5 percent vacancy reduces annual

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rent to 39,900 dollars before

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those allowances.

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Use zero only when an

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expense does not apply.

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Select Analyze Deal after

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changing inputs.

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Keep your own record because

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beta saving is unavailable.