Jewel Emy February 17, 2021 Spreadsheet
I love spreadsheets. I use them for everything I can and every kind of organization. I, honestly, don‘t know what I would do without them or what how I used to cope before I first discovered them. I use a spreadsheet to balance my checkbook, to manage my business expenses, and to make ‘To Do‘ lists to plan out my days. I also use spreadsheets to manage my money and set my financial goals.
Third, building the right kinds of collaborative applications requires some skill and understanding how and what kinds of data are shared. How many people are going to be adding/changing records to your database? How many just want to do queries and reports? And how do you prevent conflicting updates? Finally, when you add the Web and Internet‐based access to the data, you have greatly increased the skill level required to create and manage your database. While there are some really good Internet‐facing database programs (Alpha Software, Filemaker, Quickbase from Intuit, and DabbleDb ‐ just to name a few that I know of), none of these are as easy to setup and manipulate as Trackvia.com, a service that has been out for the past year but recently gotten some much‐needed improvements.
Choosing the best budget spreadsheet software can be difficult if you have no idea on what you exactly need. If you don‘t know the exact features you‘re looking for, then the safest bet would be a user‐friendly spreadsheet software that can be easily used even by beginners. Look for this quality in a software program for household budgeting to avoid the hassle of using a very complicated program.
So every cell has its own unique address, comprising the letter of the column and the number of the row for example (A1, A2 and so on). You can type numbers, text or formulas into these cells. The formulas make it possible to get the program to do all the time consuming arithmetic for you. One last tip for learning how to figure out spreadsheets is when you are dealing with numbers, it pays to give some thought to how to lay out the spreadsheet. When you type in information, be as careful as possible. Also remember, it is the ability to perform complex calculations that makes spreadsheets such powerful tools. It is worth the effort to learn how to use formulas correctly.
The fourth component to look for in a real estate investment spreadsheet is the ability to input growth rates. Instead of manually keying in different numbers, say for utility costs or rental rates, simply changing a periodic growth rate is much faster and easier. Most good investment models will allow the user to change the important input factors via growth rate variables. This substantially reduces the time to analyze different scenarios and allows the spreadsheet model to be semi‐automated.
We want to look at costs, so we reserve a tab in the real estate spreadsheet for that. Here, you have a decision. You can either make a large list of standard rehabilitation and operating costs or a smaller list of costs specific to this property. The first option allows you to use the Excel spreadsheet for other properties which are probably not the same. The second option keeps things small and tidy and might work if this is a once‐off investment. Either way, you will want to include all of the costs in a timeline schedule by week or month. This would include the re‐roofing, paint, plumbing, electrics, landscaping, electricity if you are responsible for it, insurance, etc. The financing costs are likely to be the most complex because you need to estimate not only the interest rates of the loan or loans you get, but the principle amortization, mortgage insurance, etc. This can be complex from a calculations standpoint. How granular you get with costs is up to you.