Break Even Rental Properties Worksheet
Successful real estate investors calculate the break-even point of rental properties.
There are only three possible outcomes to investing in Calgary Real Estate.
- You lose money
- You make money
- You break even
This chart starts with the assumption that you collect enough rent to offset the operating costs. All you can change in this excel worksheet are highlighted in gold. Because that is where the gold is. Anything you can improve on is gold in your pocket.
- Make money when you buy the rental property for instant equity and enhanced appreciation. Buying below market value gives you an excellent head start to profitability, and the year-over-year appreciation is on the market value, not the discounted value you paid. That’s a win-win right from the start.
- Negotiating a lower interest rate and a longer amortization offers another win-win opportunity to increase profits and a cushion should the market start favouring renters.
- Get higher rent and better tenants with proper property presentation and strict tenant selection criteria. Another win-win situation that amplifies your return on investment.
Do the math. Know what your break-even scenario is and work hard to improve it. Buying right offers opportunities. Financing smart offers opportunities. Renting right makes everything pay off.
Calgary Investment Properties can be fun and profitable when you have the right people on your team. Use this excel spreadsheet to crunch your numbers and purchasing power. Then call us to help you buy the right rental properties in Calgary and fill them with incredible tenants.
As you can see in the chart below, doubling your real estate investment in 5 years with an income property is a distinct possibility.
For a copy of this Canadian Investment Properties – Break Even Excel Spreadsheet:
Send me an email at Jerry@JerryCharlton.com