Calculating Returns On a Rental Property (ROI with Excel Template)

[@LeilaGharani]

Grab the file I used in the video from here 👉 pages.xelplus.com/calculate-returns-file

[@Saddam-Abdulameer]

I watched this video more than 5 times, its valuable , thank you liela

[@shakiraasfoor7599]

I watched 3 Times Till Now

[@tubemayoor]

Hey, this is fantastic. I like how you deliver the content and the explanation you provide is superb! You teach how to fish, instead of giving the fish itself! Keep it up!

[@nikhil3868]

Very informative I would like to see more accounting videos in future especially accruals , financial statements etc in detail . Thanks 😊

[@TTex123]

Leila is killing it with her channel. Doesn't hurt that she's gorgeous and has the cutest accent.

[@drsteele4749]

Nice and clear - well done Leila! Quick hint: to duplicate a formula in a cell below, instead of copying and pasting from edit mode at 12:49, just press CTRL' (that's control and apostrophe) in D51 and there it'll be! Second hint: don't rent properties to college kids unless you drastically increase maintenance expenses.

[@LeilaGharani]

Thank you for the tips!

[@NamanArya]

I eagerly wait for your videos Leila. I guess no one explains such fancy excel workarounds like you do. Kudos!

[@LeilaGharani]

Glad you like it :)

[@farzanmoha8935]

Great as always, thank you Leila! I usually do calculation before taking an action😃. NPV also is my favorite capital budgeting technique when it comes to invest in different projects.

[@LeilaGharani]

Very good practice :) I have a video on time value of money coming up soon in case you are interested. Stay tuned.

[@genesisfortune4113]

Amazing video. I have seen many videos from you before about other topics related to Microsoft. Little I knew that your expertise also covered the investment field. Please don't stop teaching other like myself. Congratulations.

[@LeilaGharani]

Wow, thanks!

[@Robert8455]

Cool worksheet! Let's make a super version that includes looking at this over a longer period of time: You have property increases, tax increases, rent increases, potentially property refurbishments, fencing, roofing, water heaters, hvac systems, plumbing or electrical for cost but I think there is also the added benefit of tax deductions.

[@LeilaGharani]

That'd be great Robert. I'm sure we could create a nice version.

[@htatrakal]

Great tutorial. QUESTION : HOW DO WE FACTOR HOME APPRECIATION over time TOWARDS ROI.

[@123rockstar2010]

How did you know I need this Leila? WOW, what a coincidence! Thank you so much.

[@LeilaGharani]

Good timing then :) I hope it's helpful.

[@joshuaalfred8307]

I've been trying to do this myself and was getting lost in the weeds. My spreadsheet was becoming more and more complicated! Mega thanks for this simple spreadsheet :) subscribed

[@LeilaGharani]

Happy to have you aboard!

[@random903]

This is great but would like to see with appreciation of house included. That can add (or subtract) a lot!

[@yordennowe]

Thank you Leila, very helpful. Would you (or someone else) have an idea on how to correctly reflect your potential property value increase (based on historic returns) into the ROI Return? Cheers,

[@bravucod]

I love your channel. Thanks for making such a great content available for free!

[@LeilaGharani]

My pleasure Daniel. Hope it's helpful.

[@makisalimhussain2334]

Wonderful Leila, by this you explained in a simple manner how to evaluate wide range of business opportunities. Many thank Maki S. Hussain Baghdad - Iraq

[@LeilaGharani]

Glad you like the video :)

[@mtroanoke]

It's important to note, as Leila does, that the monthly interest and principal payments are the *averages* over the entire period of the loan. So in the first few years you will be paying more in interest and less in principal than is shown and in the later years you will paying more towards the principal and less towards the interest.

[@LeilaGharani]

Absolutely correct. Thanks for your input!

[@mtroanoke]

@@LeilaGharani Thanks for your videos, I always learn something new!

[@karhukivi]

Hi Leila! I've paused the video at 0:50 to give you my back-of-the-envelope calculation. I'm assuming a perpetuity rate of 5% which I know is entirely crazy, but it gives a ballpark result. Annual rental income of (1400x12) $16,800 / 0.05 = $336,000 which is more than 50% over the purchase price. So I am concluding it is a good investment. Now I'm going to watch the rest of your video.

[@sorymosory3549]

Thanks a lot Leila, we really appreciate your effort

[@amiitmish3]

Lovely , never calculated in this way , hats off to u

[@aaleyr1]

glad to see you are so pro in Excel . i mean your really enjoy it ...and it makes learning fun for us . 👍

[@gabriellaprievara7379]

Thank you Leila! Very, very helpful and so easy to understand. I saved the template and I will definitely use it. :)

[@MattDoesGamess]

This was great to see as a finance graduate. I had no idea about an excel function that can separate principal and interest. That function should be widely known for everyone. Also the illustration showing that as you pay off the principal your ownership grows with the house. Really great watch, I'll be enrolling in your VBA udemy course very soon too! So thanks for everything you do.

[@LeilaGharani]

They can really be useful Matthew. Looking forward to seeing you inside the course :)

[@excelisfun]

Thanks for the CUMIPMT fun, Leila!!

[@LeilaGharani]

You're CUMWLC anytime :)

[@excelisfun]

CUMVERYCLEVER : )

[@drsteele4749]

@@excelisfun Oh, CUMON you guys.

[@excelisfun]

@@drsteele4749 : ) : ) : )

[@omarkhattab3865]

A great teacher and expert .. I like all of your videos ...

[@dennisd5776]

Very concise explanation of the evaluation process. Thank you.

[@LeilaGharani]

Glad you like the explanation.

[@graysonbarrett8064]

Thank you so much for this video. It is a huge help to me and you explain how to use it very well.

[@tomjun8945]

Very helpful and detailed video. Thank you for showing the interest and principal payment formulas. Make my life easier.

[@LeilaGharani]

You're very welcome!

[@christianlaurio5912]

Finally found the content I'm looking for. Thank you for this Leila!

[@LeilaGharani]

You're so welcome, Christian!

[@janpapaj1982]

Beautiful! Very informative indeed. Thank you

[@jeffsilver5762]

Really enjoying your videos Leila! Great content, excellent tips and very clear and concise. Are you planning on doing a video on how to create a spreadsheet for tracking stocks and returns, profit and loss etc? Or maybe you already have something like this on your channel? Thank you!

[@KINGDEV32]

Excellent!

[@michaeldruce4536]

Thanks Leila, this is excellent to know and the template to use. Appreciate you sharing with us. Sydney, Australia 🇦🇺 🙏🙏🙏

[@LeilaGharani]

Glad you like it Michael. Hope the template will come in handy for you.

[@sachinrv1]

Hey Leila; you have not kept any stone un turned. Absolutely amazing Cheers :)

[@LeilaGharani]

Still many stones out there 😊

[@nickt2159]

Nice job young lady. Very informative and nicely presented.

[@emeric42]

Thanks good video!

[@ebbek6065]

I invest for living. This was a great tutorial and thanks for making it interesting and also having a downloadable file. Cheers from Ethiopia

[@LeilaGharani]

That's great feedback especially coming from someone who has experience in this area. Means a lot. Thanks!

[@ThanhPhan-wb7vr]

Thankyou so much for your lesson!

[@stockscalper]

Thank you for this. Your tutorials are always excellent. I've subscribed to your channel. Big thumbs up too!

[@iecivil]

Thanks Leila, it was really helpful to learn about those formulas. Being from an engineering background it is something that we never use in excel. I was recently having a deal for a property and was checking on how the interests and loans, etc are to be calculated. I found a few tools online but I wanted something native in excel. That really helped me model my financial plan for acquisition. Again, thanks a lot... Hope you keep sharing more such videos 😊

[@LeilaGharani]

I'm glad to hear that. All the best for your property deal.

[@createbuisnesssystem1292]

You beautified the solution.

[@karhukivi]

Excellent Leila! You had me worried for a while with the morgage as I assumed one had the cash in the back pocket, so to speak. The next step might be a spreadsheet for a 10-year period which should take care of the issues of repairs and taxes, then one could calculate present values and IRRs. Another idea might be for business plans which have to forecast income and expenditures for small companies, as grants are usually contingent on providing such a cash flow forecast.

[@kaziahmed2662]

worth watching, very easy to follow. best wishes.

[@marialuzmaytorena7095]

Thank you

[@Marc1973Dez]

perfection in this vid.

[@tarekalsherif57]

That is easy and clear, thank you Leila

[@LeilaGharani]

You’re welcome 😊

[@FredericBiondi]

Again an excellent video. Congratulations Leila 👏👏👏

[@LeilaGharani]

Thank you Frederic :)

[@jackbmeere5367]

Thank you Leila, another subject filled with potentially lethal minefields taught brilliantly by yourself in a clear, easy to understand manner.

[@LeilaGharani]

Wonderful! Glad you liked it.

[@blakekelly4547]

wow, this is outstanding. Thank you!

[@gbengaolatunji2659]

Pls do video on personal Networth on the excel calculations. Thank you

[@TargetingPod]

Its incredible how much i learned just copying this.

[@LeilaGharani]

Glad to hear that :)

[@TRX2015]

I am blown away by how simple you made this for us. The tutorial is well structured, and the explanation is fantastic! Thank you once again! PS - Can you explain Monthly Expenses > Real Estate Taxes a bit more in-depth? I'm trying to figure out if this applies in my region - Toronto Canada, and I am looking to purchase an Airbnb

[@DefeatUWithSuccess]

Great video! Thank You! Now what would be considered a bad ROI? At which percentage is it a bad deal?

[@gerardmichael8523]

Awesome video.

[@akbarnia]

Very useful 👏👍

[@wayneedmondson1065]

Great video topic! Thanks Leila. Thumbs up!!

[@LeilaGharani]

Thanks, Wayne!

[@sunilkumare7868]

Very nice explanation thank you

[@frankmaina7070]

Hi Leila I started watching and learning from your excel tutorials recently. Your content has helped me learn a lot. Thank you, and blessings for the good work you do. Query : do you also do financial modeling tutorials on excel?..would love a course on this. Or even, please recommend a good tutorial channel / website on the same

[@casper3842]

Hi Leila, i wonder if you have a video tutorial for small business like distribution company. Appreciate it!

[@HoaVu-dk5wi]

The video sound is pretty good, beyond my imagination

[@fadychbayaa9247]

Very informative I would like to know about financial feasibility study. Thanks 😊

[@MrHumbleOne]

That’s a very good investment 😆 thank you so much for this video

[@mortgagesbyannie6500]

Very informative :) thanks for sharing!!

[@ronspi]

This is a very interesting video because it doesn't talk about taking a mortgage to pay back the bank, but taking a loan from the bank. Mortgage payments would have changed the calculations because when paying mortgage, you pay more interest and less principal at the beginning (first few years). Then the interest payment is reduced and the principal is higher. In the example here, you used a fixed rate and fixed payment, so you were able to calculate the identical payment and the ROI in every month - something that will not work if you have a mortgage.

[@LeilaGharani]

For any loan the share of interest expense will be higher in the beginning because of the higher outstanding principal. With the formulas I used I calculated the average values for interest expense and pay down of principal over the entire term of the loan. I'm interested in the average ROI over the years not the ROI I'll make in the first few years.

[@ronspi]

@@LeilaGharani Thank you.

[@benjieh.9680]

Maam, can you make a video regarding the nature of Loan Amortization (or how is the computations work). Thank you for not ignoring my comment. More power to you and God bless.

[@captaindon23]

So good. Thanks!

[@rgarlinyc]

Thank you - very clearly explained (as ever) and very helpful.👍

[@luisolivaresferre3600]

Thank you Leila, this was truly useful!

[@LeilaGharani]

I'm so glad, Luis!

[@saheerk5011]

You are great Leila, God bless you,appreciate your research

[@LeilaGharani]

My pleasure. I hope it's helpful.

[@saheerk5011]

Definitely, I used to search for your new videos, I covered most of the videos, it has helped me a lot on my routine office task.

[@victorubong9328]

Thanks Leila. Very educating and helpful video. Please can you do one that compares renting vs buying a property?

[@inafm521]

Wonderful explained 👏 thank you. I need How to Build a budget in Excel, please. For nonprofit organization 🙏 salaries. Fringe benefits...

[@sat_sonic]

How would I build in future value (estimated sale price) after say 22 years? For example, after 22 years sell for $350,000, would it be possible to modify your template to take that into account of the ROI?

[@juangcastro]

Leila, also you should take into account the annual appraisal of the home as additional revenue in the ROÍ calculation. Cool video.

[@LeilaGharani]

👍

[@Jay-Atom50]

Wow. I had created an IPMT table with every period of the entire loan and added them with SUMIF. Now I just learned about this cumulative function. Thank you! Is there a more advanced excel of this version available that can compare investment with stock investing return and also track tenant payments / HOA / property tax etc. ? This excel video is excellent.

[@RahulJauhari]

Thanks mam for sharing knowledge . I am living small town of India we never calculate this.

[@NJTYY]

What about the net present value and opportunity cost, which should also be taken into account when investing?

[@TheDominion37]

Excellent video.

[@visheshgoyal3999]

A huge thank you for the info!!

[@mazenalsakkaf]

Another great video..many thanks

[@RequiumFrost]

excellent video and great blog

[@sopyanto1]

Informative...Will use it when i want to buy a house for investment

[@bonez8246]

Fantastic Leila!!!!!

[@muhammadabdullahkhan892]

Great work, very informative and useful. You are doing great, God Bless you

[@LeilaGharani]

Glad you like the video.

[@aftech7268]

Your awesome this is exactly what I was looking for -

[@LeilaGharani]

Glad I could help!

[@johnl2650]

Excellent

[@massimoianniciello6509]

In Italy this kind of investment it is not worthing making it, for several reasons: 1 in Italy we have a low if you want to purchase a second house you have to pay 9% registration tax instead of 0,50. the cost for the realtor fee is 3%. I don't want to consider the costs just in case there are some other cost of breakage to the structure like to fixe some water pipes, to paint some walls, some dripping water problems at the roof that nowadays are very common due to the climate change with heavy dowpoors, or hail, then we have to consider the deterioration of the propriety that every year it becomes older and older. You have mentioned the fact just in case the propriety is empty for a certain period of time. but we also have to consider just in case the tenant just in case doesn't pay the rent, that nowadays in Italy is not easy to evict the tenant. or jsut in case the tenant doesn't pay the condominium expenses, in this case the landlord has to pay them. so the game is not worth the candle, this is not a good investment to make. I say this seen may experience, in any case many thanks for your vides

[@LeilaGharani]

Many thanks for sharing your experience, Massimo!

[@سامحسيد-ص8ج]

Wonderful as usual

[@LIFE-OF-MINERVA]

** great

[@dustyarcher]

Wow you are such a blessing! Can you do a video of how to convert this spreadsheet in to form in Excel please. Thank you! Dusty

[@DougHExcel]

Excellent walk-through! Now I'll have to go find some rental property :-)

[@LeilaGharani]

Let us know when you're successful :)

[@LordJon0SRS]

Great video thank you.

[@timmyjan]

two of my fav things in the world investing and excel, insta like you don't even have to say it ;)

[@LeilaGharani]

Thank you for the insta like :)

[@hosseinhosseinpoor4845]

thanks.....

[@kiranshiudkar5794]

Very nice explanation but I have one query... Rent for property will not be same for 25 years that is 1400$. Rent may be increase yearly ... Please let me know if you are getting my point

[@investorccc9532]

Thank you so much

[@0ExG0]

I will use this to not only calculate Rental of Poperty but also Cars.

[@jonburd9294]

Hi call .I'll help u with your business

[@kampatterson1865]

Fantastic, thank you very much.

[@faridzaiman5625]

For housing loan usually the principal and interest will kept changing right??

[@gerardmichael8523]

Any more real estate videos?