Real Estate Investment Analysis software
I am new as of today, so hi to all! Ehat a wonderful forum. People you dont even know willing to share their stories and experience. It does not get any better than that.
I would like your (anyones) suggestion on a resonably priced software to run the operationg numbers for potential multi-family investments.
FYI. We live in NYC and have a few multi-family properties in Jersey City. We also have a weekend home in Walden NY. Both our NYC apt and the weekend home are paid by the proceeds from our Multi-families.
Appreciate your response in advance.
If you have the MicroSoft Office suite, you already have all the software you really need in Excel.
Thanks for your reply, although I prefer to have the professional software which will perform all the ratios I need instead of having to write the code myself in excel.
Someone must know of a program fro a modest orice?
What "ratios" do you need?
For 1-4 unit residential rental properties, there is really only one ratio that is important -- Debt Coverage Ratio (DCR).
Divide your Net Operating Income (NOI) by your Debt Service (principal and interest only). If the answer is 1.25 or higher, the property will probably generate enough cash flow to make it worthwhile. If the DCR is less than 1.0, then the property has a negative cash flow; whereas, a DCR of 1.0 is exactly breakeven.
If you are looking at larger residential multi-unit properties where comparable sales numbers are not available, then a Capitalization Rate might prove useful in determining the value (i.e., your maximum purchase price) of the property.
Purchase price = (NOI) X (desired Cap Rate);
where NOI > (1.25) X (Debt Service)
Now that you have the really useful numbers that you would want for your investment analysis, you don't need to pay hundreds of dollars for a spreadsheet to perform these calculations.
If you are just overwhelmed by the task of constructing a spreadsheet to perform these basic calculations for an investment rental cash flow analysis, send a blank e-mail to jreynolds4@sc.rr.com. Put "Cash Flow Analysis Spreadsheet" in the subject line, and I will send you (and anyone else who wants to ask) a demonstration copy of my spreadsheet when I get back home on Saturday night.
Check out RealData- I use it extensively in lieu of Argus. ARGUS is the REIT and sophisticated investor standard analysis software.
real data is good, and a lot cheaper ($500 vs $5000 for ARGUS)
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Than
I used this program when I worked commercial properties, great little program - easy learning curve.
search for "investit" in Google and it will give you a link to their site for more info.
"Investit is a Real Estate Investment Analysis toolbox for Real Estate professionals. It comprises six powerful Real Estate Software programs: Analyzer, Calculator, Developer, Financier, Investor and Resources. Each program automatically generates professional quality Reports with the push of a button. Extensive help messages and a manual, not only teach you how to enter data and use the program, but also about Real Estate Investment Analysis through the use of comprehensive explanations, examples, and practice exercises."
[ Edited by fdbrown on Date 09/16/2003 ]
Try CCIM site. The software is free and one of the most widely used for income property. Works on Excel.
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