These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Tuesday, April 12, 2016

Craig Goodman: Quick & Dirty Analysis on Rental Properties

Throughout my career, I hope to gradually build a small residential real estate portfolio as part of my retirement strategy. This project was built to help me streamline the high-level quantitative analysis that is fundamental to approaching any investment property. The goal of this tool was to provide quick and user-friendly functionality where I could: 1) Gather market data on properties for sale and for rent; 2) Input investment assumptions into the model; 3) Produce a summary of investment measures (based off the inputted assumptions) that indicates viability of the investment.

At a high-level, the program is setup and flows as follows:

First: The user inputs criteria for rentals and for sale properties in the designated city they are analyzing. The program then goes and scrapes data on KSL given those parameters, and exports this data into an organized list and pivot table view. The objective here is to help provide market data (both purchase price and rental price) that will serve as benchmarks to the property I am analyzing.

Second: On the Rental P&L tab there is a button titled “Edit Inputs” where the program calls up several consecutive userforms. These userforms allow the user to input assumptions on the property, loan, expenses, financial situation, etc. All of these inputs are stored and calculated as part of what follows.

Third (and finally): A summary dashboard is created on the “Rental P&L” tab. This takes the inputs from steps two and kicks out a five year P&L, along with key investment measures. The goal was to make a quick process whereby I could input assumptions on a property and immediately see projected results on those assumptions.

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