travisjneuman/.claude/real-estate-analyzer

COMPARABLE SELECTION CRITERIA:
1. Location: Same neighborhood or within 1 mile
2. Recency: Sold within last 6 months (3 months preferred)
3. Size: Within 10-20% of subject GLA (gross living area)
4. Condition: Similar age, updates, and maintenance
5. Style: Same property type (SFH, condo, townhome)
6. Lot: Similar lot size and features
 
ADJUSTMENT CATEGORIES:
+ / - Location premium/discount
+ / - Size differential ($X per sq ft)
+ / - Bedroom/bathroom count
+ / - Garage, pool, upgrades
+ / - Lot size difference
+ / - Condition adjustment
= Adjusted Comparable Value

NET OPERATING INCOME (NOI):
Gross Potential Rent (GPR)
+ Other Income (laundry, parking, storage)
= Gross Potential Income (GPI)
- Vacancy & Credit Loss (typically 5-10%)
= Effective Gross Income (EGI)
- Operating Expenses
  - Property taxes
  - Insurance
  - Management fees (8-12%)
  - Maintenance & repairs
  - Utilities (owner-paid)
  - Landscaping
  - Reserves for replacement (3-5%)
= NET OPERATING INCOME (NOI)
 
PROPERTY VALUE = NOI / Cap Rate

COST APPROACH:
Land Value (from comparable land sales)
+ Replacement Cost New (current construction cost)
- Depreciation
  - Physical (age, wear)
  - Functional (outdated features)
  - External/Economic (market decline, location)
= ESTIMATED PROPERTY VALUE

ANNUAL CASH-ON-CASH RETURN:
Annual Pre-Tax Cash Flow / Total Cash Invested x 100
 
TOTAL CASH INVESTED:
Down Payment
+ Closing Costs
+ Rehab/Renovation Costs
+ Initial Reserves
= Total Cash Invested
 
ANNUAL PRE-TAX CASH FLOW:
NOI
- Annual Debt Service (mortgage payments)
= Pre-Tax Cash Flow
 
Target: 8-12% for buy-and-hold residential

PURCHASE ANALYSIS:
Purchase Price:              $__________
Down Payment (___%):         $__________
Loan Amount:                 $__________
Closing Costs:               $__________
Renovation Budget:           $__________
Total Cash Required:         $__________
 
MONTHLY INCOME:
Gross Monthly Rent:          $__________
Other Income:                $__________
Vacancy (___% of GMR):     ($__________)
Effective Monthly Income:    $__________
 
MONTHLY EXPENSES:
Mortgage (P&I):              $__________
Property Tax:                $__________
Insurance:                   $__________
HOA/Condo Fees:              $__________
Property Management:         $__________
Maintenance Reserve:         $__________
Utilities (owner-paid):      $__________
Total Monthly Expenses:      $__________
 
MONTHLY CASH FLOW:           $__________
ANNUAL CASH FLOW:            $__________
CASH-ON-CASH RETURN:         ____%
 
5-YEAR PROJECTION:
Year 1 Cash Flow:            $__________
Cumulative CF (5 yr):        $__________
Equity Built (5 yr):         $__________
Appreciation (___/yr):       $__________
Total Return (5 yr):         $__________
Annualized ROI:              ____%

MONTHLY PAYMENT (P&I):
M = P [ r(1+r)^n ] / [ (1+r)^n - 1 ]
 
Where:
  M = Monthly payment
  P = Loan principal
  r = Monthly interest rate (annual / 12)
  n = Total number of payments (years x 12)
 
AMORTIZATION SNAPSHOT (Year 1 vs Year 15 vs Year 30):
| Period  | Payment | Principal | Interest | Balance   |
| ------- | ------- | --------- | -------- | --------- |
| Month 1 |         |           |          |           |
| Year 5  |         |           |          |           |
| Year 10 |         |           |          |           |
| Year 15 |         |           |          |           |
| Year 30 |         |           |          |           |

PROPERTY SCORECARD:
Score each factor 1-5, multiply by weight.
 
| Factor               | Weight | Score | Weighted |
| -------------------- | ------ | ----- | -------- |
| Location Quality     | 20%    |       |          |
| Cash Flow Potential  | 20%    |       |          |
| Appreciation Outlook | 15%    |       |          |
| Condition / CapEx    | 15%    |       |          |
| Tenant Demand        | 10%    |       |          |
| Financing Terms      | 10%    |       |          |
| Management Burden    | 10%    |       |          |
| TOTAL                | 100%   |       | __ / 5.0 |
 
RATING:
4.0-5.0  Strong Buy
3.0-3.9  Buy / Hold
2.0-2.9  Hold / Caution
< 2.0    Pass

1031 LIKE-KIND EXCHANGE:
Defer capital gains tax by reinvesting proceeds into "like-kind" property.
 
KEY RULES:
- 45-day identification period (ID up to 3 properties)
- 180-day closing deadline
- Must use Qualified Intermediary (QI)
- Equal or greater value and debt required
- Same taxpayer name on both transactions
- Cannot receive "boot" (cash or unlike property)
 
IDENTIFICATION RULES:
1. Three Property Rule: ID up to 3 properties of any value
2. 200% Rule: ID any number, but FMV cannot exceed 200% of relinquished
3. 95% Rule: ID any number if you acquire 95%+ of identified value
 
COMMON PITFALLS:
- Missing the 45-day or 180-day deadline
- Touching proceeds (must go through QI)
- Attempting related-party exchanges
- Not matching debt levels (creates taxable boot)
- Mixing personal use with investment use

1% RULE (screening test):
Monthly Rent >= 1% of Purchase Price
$200,000 property should rent for >= $2,000/month
 
2% RULE (strong cash flow):
Monthly Rent >= 2% of Purchase Price
Rarely achievable in appreciating markets
 
50% RULE (expense estimate):
Operating expenses = ~50% of gross rent (excluding mortgage)
Quick NOI estimate = Gross Rent x 0.50
 
70% RULE (for flips):
Max Purchase = (ARV x 70%) - Repair Costs
ARV = After Repair Value