Park City Investment Real Estate Calculators

This page offers a software tool that will help you understand loan amortization.  We also provide you with an investment property analysis tool outlining cash flow and rate of return.  Consider the possibility your Park City vacation condo becoming your Park City rental condo.  Does this make good business sense as an investment? 

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These tools are a good start to the Park City investment property evaluation process.

Please consult with your own independent tax advisor concerning the tax consequences of investment real estate and your own individual situation.

Compleate the input section then press calculate. Blue fields are calculated automatically.  Click on the link below to begin the evalutaion:

Investment Real Estate Calculators

You can use the Park City real estate contact form below to reach out to me.  There is  no obligation.  Please take a moment to fill in the blanks.

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This calculator calculates the net income, cash flow, return on equity, appreciation, equity increase, tax savings, and capitalization rate on investment real estate. Income, cash flow and return on equity are calculated before and after tax.

  • Purchase Price - Total acquisition cost of property including land.
  • Value of Land - Fair market value of land when property was acquired. This usually has to be estimated if rental structure was present when property was acquired.
  • Depreciable Basis - This is calculated automatically by subtracting the Land from the cost. The Land can not be depreciated. Depreciation on Residential property is calculated based on 27.5 years. Nonresidential property is depreciated over 39 years. These are the IRS's approved methods for real property placed in service after December 31, 1986.
  • Loan Amount - The amount that will be mortgaged.
  • Interest Rate - The annual interest of the mortgage. For example if the rate is 8.5% enter 8.5.
  • Length of loan - Number of years the mortgage or note is amortized. If a loan is entered it must be 10 years or longer.
  • Mortgage Payment - This is the monthly payment on the mortgage. This amount is calculated automatically.
  • Income tax rate - Your marginal income tax rate, state plus federal (the percent of tax you pay on your last dollar of income).
  • Appreciation % - The annual rate of appreciation of the property.
  • Inflation % - The amount that rents and expenses increase annually.
  • Type of property - If 80% or more of the gross rental income is from dwelling units enter Residential, if less than 80% enter Nonresidential.
  • Income from Rents - Enter income and expenses as annual amounts.

Note:

  • Interest, principal, and depreciation expense are calculated automatically internally.
  • Cash flow is calculated by adding to net income depreciation expense and subtracting principal paid on the loan.
  • Return (Return on Equity)  is calculated by adding appreciation increase during year plus principal paid on the loan to cash flow then dividing by the prior years ending equity balance.
  • Capitalization rate is calculated by adding the mortgage payment times 12 to annual cash flow in year one and dividing by the purchase price.
  • Income from rents and insurance are not adjusted for inflation until year two. Maint & Repair, property taxes, and other are adjusted for inflation beginning in year one.

Valuable Links:

Deer Valley Condo Rentals: Offering Deer Valley and Park City UT vacation condo rentals and lodging. Luxury two bedroom and Studio condo units available in Prime Park City location.