From the course: Real Estate Analysis Foundations

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Single fix and flip analysis, part 2

Single fix and flip analysis, part 2 - Microsoft Excel Tutorial

From the course: Real Estate Analysis Foundations

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Single fix and flip analysis, part 2

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- [Instructor] Alright, continuing our example from the previous lecture, we've put in all our base line assumptions now. This is what we're starting with. This is what we think our purchase pricing is going to be, our renovations is going to be, and our financing, as well the sale price. Okay, so let's look at what happens in our analysis when things change. So, let's start with the purchase price. What if there aren't a lot of buyers that are looking at this house and the seller really needs to sell it. It's been on the market for six months, they really want to get out of there, and they're very motivated, and what if you're able to get it for a little bit cheaper. What if you get for $85,000, $5,000 less? Now take a look at all these numbers here, these returns. You would expect if you have a lower cost that they're going to go up. Profits are going to go up, your IRR is going to go up, your cash multiples are going to go up, your MPVs are going to go up. Everything here should go…

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