Caption transcript. This text is pulled from YouTube captions and may contain minor wording errors.
[00:01] Okay, I'm pretty excited about this video. Um, I get to de debut the calculator that I've been working really hard on. Um, it's changed the way that I've run through numbers. It's it's um, you know, for for long-term, for stabilized five and up properties, for pads split, for flips, um, even burr and
[00:20] Airbnb, you can run through numbers to see if things make sense. So, pretty excited about it. I think that uh um everything like the math, you know, is is complex and pretty complex in some areas and uh everything is is appears to be working pretty well. Um so I'm going to run through this because if you're
[00:38] watching this video, you probably downloaded the the calculator from my website. So I'm going to basically explain how it works and I'll try to make it um you know not as boring as possible because we're talking about a calculator and numbers here. So uh let's let me share
[00:57] my screen here. There we go. Okay. So I can go ahead and uh expand this out a little bit. Okay. So here we are basically right here. We're going to put in I'm just going to run a really quick deal here and then you can put a link to a property and we're just
[01:30] going to put a random link in here. It'll maintain, you know, uh so you can pull it up whenever you whenever you need to. We're just going to put the price in here. It's an arbitrary number, $500,000. And the ARV here is
[01:52] I don't think we're going to we're going to do an ARV here actually. So, we're just going to skip past that. Let's say we'll put in $50,000 into the property as a rehab budget. Buyer's closing cost. We'll put one and a half%. This is a loan. It's not cash. And this is principal and interest. This is not an
[02:08] intereston loan. If you want to, you can do that. Everything, you know, seems to be working for the interest only as well. So, we'll do uh 20% down. And then here you see that's calculating the loan amount, the amount down, interest rate, six and a half term. Uh so all this should make should be pretty intuitive.
[02:27] That was kind of the goal. And you can run through and see so far the total money invested. And I just kept a notes column to basically, you know, remind you for what each thing because it can it can be a lot especially as we get further in. Here's where you can
[02:44] edit uh furnishing costs for pads splitter or Airbnb. I don't really see the need to furnish a long-term rental or a flip or, you know, anything like that. So, if there's other costs, add it into your rehab budget is probably what I would do. You can go ahead and set your long-term,
[03:01] short-term, and pads split property management fees here, and it won't change unless you change it. And we have baseolding costs. base holding costs are property taxes, insurance, and HOA. And your uh variable holding costs are right here. So, I know this is kind of like overwhelming a little bit, but it should
[03:19] be pretty pretty simple and obvious. You have long-term, short-term, passive flips. You can adjust these and they will stay uh unless you change them. So, just change all the columns and cells in yellow. If you need to override your taxes, like let's say your taxes are going to be way higher, uh you can put
[03:37] it right here and it'll change it right there. And then you delete this if you're done. And you know, it'll keep the algorithm at 1.7% or 1% for that. So, let's just go ahead and skip around. Um the rest of it you can figure out. One of the things I like is you can enter in rents. Let's just say your
[03:56] rents here are like $3,800 a month. It'll show you if you're break even and factors all expenses in holding costs, reserves, all of it. Property management fee. So, and vacancy of course. EGI is gross rent after vacancy. So, uh yes, stabilized scenario. If you want to add this in, it'll adjust. Let's say you get
[04:23] your rents up to $5,000 a month. The implied value for your property at a 5.5 cap is 589,000, but you drop that to a 5% and your property uh if it was a five or more unit be 650,000 almost. Now, we're going to go to padsplit. Um, this is the one
[04:47] I'm most like I I love the most really because you can type in, okay, we're going to get uh 10 bedrooms in this uh house. And we'll assume that average moveouts per year is about, you know, let's say each person stays about, you know, a year. So, you have about 10 moveouts per year because there's 10
[05:04] rooms. So, you have $650 cash flow per month, which is um it's pretty fantastic. Uh you can look at all the the numbers here and verify everything for yourself. Run it through Chad GBT if you wanted. It'll also tell you your total cash invested, your all-in basis, your total
[05:25] cash. So this is like the total money that you would have to bring to the table through the down payment, closing cost, points, rehab setup. And then your cap, cash on cash, all this stuff right here. And the IRRa and your total return on investment is going to come from the master summary page, which we'll go over
[05:43] later. uh Airbnb. Uh there's all these numbers you can change right here. I don't use Airbnb as much, but let's say it's like 325 a night or something. Actually, this would be probably closer to 420 a night. You can set your occupancy depending on the area. You can pull some of these
[06:01] metrics from your DNA and uh that'll really help guide you into what your average will be. But you can see here um you know, not I wouldn't say it's a good investment, right? because there's not a whole lot of room for safety, but we have factored in all the reserves and everything and and perhaps the reserves
[06:18] are too high. You can adjust these as well. Everything in gray is a is a is a formula. You don't want to change that. Same thing with down here. Uh cuz I have some scripts involved to print to PDF and uh move things around. So, you really don't want to change any of the um tab names down here.
[06:42] And then here's the burr. So burr is interesting because you can pull it's really set up to pull numbers from one of the other rental strategies. So whether it's an Airbnb pad split or long-term rental, it'll take those numbers. So like short, let's let's pull the uh pads split. It's pulling all
[07:00] these numbers right here into the burr. And um let's see. We do need an ARV for this to make for this to actually work. So, we'll just put in 550 because that's basically the Renault plus uh the purchase price. And you can kind of see the cash flow is significantly less. It's not
[07:19] significant, but I I don't think I figured uh I don't think that I have purchase interest rate to add that in there. So, let's say you buy hard money at 11%. And it's going to factor in your holding cost for the six-month period and it's going to really it's here's your target uh loan to value. So, if you
[07:38] want to pull out, sorry, I don't know what that was. If you want to pull out some of your money once you've done the work, um, if like let's say your bank will give you an 80%, you can change that, but I don't think that's really realistic right now. It's probably 75, maybe even 70. But,
[07:58] uh, you can change that. This is your target refi interest rate and your closing cost with the lender to do that. Um, so yeah, you'll see right here, this is not really much of a difference. What's really eating into this is the fact that you're factoring in a lot of uh um closing extra closing costs and
[08:17] holding costs for 6 months. Normally, let's say the refi was like or I'm sorry, the ARV was like $750,000. then you'll see you're really trying to pull out a lot of that value you created and you can see that the rents are actually below negative because you pulled too much out and the loans too
[08:34] big for the rents to to to uh to handle. So anyway, you can you can use that as a as a guide. I found it very very helpful myself. Okay, next we'll go to flip. Uh pretty simple. Um yeah, I don't really need a you can figure that out yourself. And here's where everything pulls from. I
[08:56] don't have the IR IR into the Airbnb side yet, but I haven't pad split in longterm. Airbnb will be out like tomorrow. But basically, you will set your hold period. So, if you're holding for five or 10 years, you can set that up. It adjusts all these
[09:13] numbers and it'll it'll basically show you the comparison of every single one of your strategies uh for cap, cash on cash, DCR, all this stuff. And I even pulled well anyway you can see right here um irr definitely changed irr on this one is really good over 10 years. I mean it
[09:33] could be better. 11 and a half% isn't great but this is kind of a fake deal anyway. I don't really have uh this isn't like a real deal I'm putting in. So um yeah that's what we like to see above 14 15%. And then you can set your NOI. So the NOI is obviously the rents and uh your
[09:52] net operating income. So it's like the expenses and rents and um your property appreciation. So if your your property actually appreciates uh we can we can look at historical comps to determine over the last 15 20 years how how much a property tends to grow and then do do that by that number. And then the NOI is
[10:14] just an average. Of course, it affects the uh well, I already told you the selling costs. Uh you can change that to whatever number, but you're you're looking at closing costs with title company and you're looking at paying commissions for two agents. So, you can set that to what you think it's worth.
[10:30] Uh and then you have a little, you know, nice little chart here that shows you the difference between all of them. And again, this is a fake deal. So, you know, this is maybe not super helpful, but I'm going to change this back to five cuz I kind of like that as like a base, you know, see what that looks
[10:44] like. And, uh, the best thing here is you can print a PDF. It'll run this script and it'll print off every single one of these. So, give it a second. It'll export this PDF for you. It'll even input it into your drive folder for you, a specific drive folder. There is a little bit of setup for that, but if you
[11:05] don't want in the drive folder, just click download here and fits it all each each tab on one page and you can download it. So, just an easy way to save your deals. It's nicely titled at the top and dated. And uh if you don't want to that's that's too much
[11:25] uh for most people. What you might want to do if you're just looking at long-term or just looking at padsplit, just click the PDF button on that particular page and it'll just spit out a three-page PDF for the purchase padsplit and master summary. And I'll show you what that one looks like as
[11:40] well. And the great thing about the links here, I didn't realize this when I did it, but you can actually click this and it'll take you right to the property. So that that link stays um clickable uh on these PDFs. So hopefully that helps. Um, if you have any questions about the PDIA
[11:58] or the uh calculator, let me know. If you're seeing anything weird about it, let me know. Um, I guess the last thing I'll tell you is like the purple fields pull from the purchase page and yellows are in inputs and grays are calculations. And uh, that's about it. Thanks for watching.
