Working out purchase price of rental property based on rent

Hi,

I have created a spreadsheet to help me analyse rental properties I am looking at purchasing. Basically, rent less expenses equals potential profit.

I would like a field that can give me my "break-even" purchase amount. I'd like to be able to see what purchase price I would need to acquire the property at at any given rental value in order to make the "interest only, cash flow weekly" field equal zero. In fact, if I were able to do it for each of the mortgage term options that would be the ideal.

In this spreadsheet all of the yellow fields are the user inputs and the blue ones are the significant outputs. The highlighted pink was where I wanted to put the proposed field.

Ryan

I solved it! Good old fashioned algebra.

(NOI-(closing costs*Secondary Interest)-(Renovation costs*secondary interest))/((primary interest*0.7)+(secondary interest*.03))=purchase cost. I channelled my inner high school student.

I figured it out using the interest only figures, but haven't got my head around how to do it with the amortised figures. I'll get there eventually, but I'm not really sure how excel uses the PMT function to come up with its figure. Is it an algebraic function? Or something I can separate out into an equation?

Hope this helps someone.

If anyone has any suggestions let me know

I’d love it if someone knew how to tackle this problem using the amortized loan and not just interest only