Real Estate Flipping Calculator: Renovation / Value-add Drivers

 If you are buying real estate buildings or properties, renovating them, and then re-selling for a higher price, this template will make the financial analysis of such activities easy. It is flexible enough to be used for a single property or a dynamic apartment building / multi-family property that has up to 10 unit types. 

$45.00 USD

The template will be immediately available to download after purchase. This is included in the real estate template bundle.


value add real estate

The model starts with assumptions about the initial investment required. This includes the purchase price, cost of renovations, and any financing that may be taken on. The renovation cost will be determined by a bottom-up calculation that runs off the total number of units per type and cost of renovations per unit.

Next, you can enter details about each unit type, the count, and the current rent roll as well as occupancy. This is followed by assumptions regarding the post-renovation metrics. This means the increase in rent per unit and new occupancy expected.

The final gross rental income will then populate and there is a section to enter new operating expenses in order to see the post-renovation Net Operating Income (NOI). 

The final step is entering exit assumptions, which are driven by the post-renovation NOI and an exit cap rate. You can override this if you want to manually enter an exit price for the building/property.

The calculator then assumes any debt/accrued interest is paid off upon exit and determines the net exit proceeds. This is compared to the initial investment required in order to spit out an ROI and Equity Multiple of the deal.

Note, I did add the Net Profit pre-tax calculation. 

Questions and Answers From Customers Who Purchased This Template:

Customer Question:

I have a question, I am looking for a model that will help model out the returns and such of flipping houses. The model I put in the subject is very close but i want to know if we are just flipping houses and not renting them out can we still use this model to get the numbers you are showing? Would we just leave the rent blank? Or do you have something else

example - they want to buy 10-12 single family houses per year and eventually scale up to 100 houses a year by year 5, reno and sell 6-9 months later. 

Seems aggressive but that is the task I have been dealt. Most my prior models aren't enough. So just wanted to ask because I have used a model from you in the past and it works great. 

Answer:

The reference model is only for flipping, not holding, the only use of the rent input is to help inform an exit price.

If you need modifications, I can also do that at my billable rate. 

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