My workbook consists of several key components of the real
estate investment analysis. First, it gathers some relevant data, including
some of the key economic indicators like unemployment rates, the Consumer Price
Index (CPI), and US employee productivity. These allow the user of the program
to get a quick glimpse of the last six months of these numbers to get a feel
for what the US economy is looking like. The user can also look up current
interest rates for a given geographical area—an indicator of the economy, but also
a key component of investment analysis.
Next the program will search for single family homes (my
primary interest in the real estate market) using inputs from a user form, pull
out relevant data, and organize it so it is easy to compare several properties.
After the properties have been found, the user can input investment assumptions
into two other forms. These inputs include the investor’s income (to calculate
tax info), the type of property, purchase price, forecasted yearly income,
forecasted vacancy rates, operation expenses, future sales price, and several
other key inputs. The program then runs these through an investment analysis
and outputs multiple investment measures, including the NPV and IRR.
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