From the course: Rental Properties 101

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Estimates of your five-year operating projections in the deal analyzer tool

Estimates of your five-year operating projections in the deal analyzer tool

From the course: Rental Properties 101

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Estimates of your five-year operating projections in the deal analyzer tool

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- [Instructor] This next section gives you estimates of your five-year operating projections. Now here, you can see all the data from the first year projections right here in this column as well as years, two, three, four, and five. The Deal Analyzer also gives you the ability to adjust the costs over time with these yellow boxes marked escalator. Let's take a look at how these adjustments may apply. The default escalator or adjustment for rent is .03 or 3%. This means you expect an increase in rent each year by 3%. Now, depending on what's happening in your market, you may choose to make this percentage higher or lower. We're going to leave it at 3% for our example. As you can see, we can make adjustments for vacancies, advertising, cleaning, and maintenance and contingencies, so any contingencies you may have on the property. If we leave the escalator at zero, the Deal Analyzer will simply use the first year projected figure…

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