Investment Property Pre-Analyzer - The Wealthy Life Club

Costs

Purchase Price:

Property Purchase Tax:

Legal Fees/Closing Costs:

Total Cost

$

Expenses (Annual)

Property Tax:

Insurance:

Strata Fees:

Utilities:

Maintenance (Guideline: 1% of Purchase Price):

Total Annual Expenses

$

Income From Property:

Annual Rents:

Other:

Total Income:

$

Formula

Income

$

Plus

Expenses

$

Divided By

Cost

$

Equals

Cap Rate:

%

If CAP RATE is greater than 5% Proceed with next phase of due diligence.

If CAP RATE is between 3-5% proceed with Caution.

If CAP RATE is less than 3% not recommended to proceed

The cap rate calculator is not intended to be the only tool used when deciding whether or not to buy a revenue property. The formula used in the cap rate calculator does not factor in all costs which may be associated with operating a property. Cash flow can vary dramatically from Cap Rates. The calculator is designed to provide a preliminary view of basic financials of such a transaction. Before deciding whether to proceed we advise you to seek independent advice about whether such a transaction is appropriate for you.