Nice and clear - well done Leila! Quick hint: to duplicate a formula in a cell below, instead of copying and pasting from edit mode at 12:49, just press CTRL' (that's control and apostrophe) in D51 and there it'll be! Second hint: don't rent properties to college kids unless you drastically increase maintenance expenses.
Amazing video. I have seen many videos from you before about other topics related to Microsoft. Little I knew that your expertise also covered the investment field. Please don't stop teaching other like myself. Congratulations.
Hey, this is fantastic. I like how you deliver the content and the explanation you provide is superb! You teach how to fish, instead of giving the fish itself! Keep it up!
Great as always, thank you Leila! I usually do calculation before taking an action😃. NPV also is my favorite capital budgeting technique when it comes to invest in different projects.
I've been trying to do this myself and was getting lost in the weeds. My spreadsheet was becoming more and more complicated! Mega thanks for this simple spreadsheet :) subscribed
Cool worksheet! Let's make a super version that includes looking at this over a longer period of time: You have property increases, tax increases, rent increases, potentially property refurbishments, fencing, roofing, water heaters, hvac systems, plumbing or electrical for cost but I think there is also the added benefit of tax deductions.
Wonderful Leila, by this you explained in a simple manner how to evaluate wide range of business opportunities. Many thank Maki S. Hussain Baghdad - Iraq
This was great to see as a finance graduate. I had no idea about an excel function that can separate principal and interest. That function should be widely known for everyone. Also the illustration showing that as you pay off the principal your ownership grows with the house. Really great watch, I'll be enrolling in your VBA udemy course very soon too! So thanks for everything you do.
Hi Leila! I've paused the video at 0:50 to give you my back-of-the-envelope calculation. I'm assuming a perpetuity rate of 5% which I know is entirely crazy, but it gives a ballpark result. Annual rental income of (1400x12) $16,800 / 0.05 = $336,000 which is more than 50% over the purchase price. So I am concluding it is a good investment. Now I'm going to watch the rest of your video.
Excellent Leila! You had me worried for a while with the morgage as I assumed one had the cash in the back pocket, so to speak. The next step might be a spreadsheet for a 10-year period which should take care of the issues of repairs and taxes, then one could calculate present values and IRRs. Another idea might be for business plans which have to forecast income and expenditures for small companies, as grants are usually contingent on providing such a cash flow forecast.
Thank you Leila, very helpful. Would you (or someone else) have an idea on how to correctly reflect your potential property value increase (based on historic returns) into the ROI Return? Cheers,
It's important to note, as Leila does, that the monthly interest and principal payments are the *averages* over the entire period of the loan. So in the first few years you will be paying more in interest and less in principal than is shown and in the later years you will paying more towards the principal and less towards the interest.
Thanks Leila, it was really helpful to learn about those formulas. Being from an engineering background it is something that we never use in excel. I was recently having a deal for a property and was checking on how the interests and loans, etc are to be calculated. I found a few tools online but I wanted something native in excel. That really helped me model my financial plan for acquisition. Again, thanks a lot... Hope you keep sharing more such videos 😊
Hi, Thank you Leila for your video and excel sheet, but I suppose it does not include the appreciated value of residential property atva later year hence appreciated value ( profits )of property also need to be added at certain % of return per annum basis, say 5-6% per annum hence later ROI will be better, I also agree other interest rate may spoil the party in some countries, I suppose my point is clear। Thank you again Bye
I am blown away by how simple you made this for us. The tutorial is well structured, and the explanation is fantastic! Thank you once again! PS - Can you explain Monthly Expenses > Real Estate Taxes a bit more in-depth? I'm trying to figure out if this applies in my region - Toronto Canada, and I am looking to purchase an Airbnb
Really enjoying your videos Leila! Great content, excellent tips and very clear and concise. Are you planning on doing a video on how to create a spreadsheet for tracking stocks and returns, profit and loss etc? Or maybe you already have something like this on your channel? Thank you!
This is a very interesting video because it doesn't talk about taking a mortgage to pay back the bank, but taking a loan from the bank. Mortgage payments would have changed the calculations because when paying mortgage, you pay more interest and less principal at the beginning (first few years). Then the interest payment is reduced and the principal is higher. In the example here, you used a fixed rate and fixed payment, so you were able to calculate the identical payment and the ROI in every month - something that will not work if you have a mortgage.
For any loan the share of interest expense will be higher in the beginning because of the higher outstanding principal. With the formulas I used I calculated the average values for interest expense and pay down of principal over the entire term of the loan. I'm interested in the average ROI over the years not the ROI I'll make in the first few years.
Maam, can you make a video regarding the nature of Loan Amortization (or how is the computations work). Thank you for not ignoring my comment. More power to you and God bless.
This is FANTASTIC!!! It would be great to also see this excel coupled visually with graphs. Additionally, I would like very much to see a retirement calculator as well that takes into account inflation.
Hi Leila I started watching and learning from your excel tutorials recently. Your content has helped me learn a lot. Thank you, and blessings for the good work you do. Query : do you also do financial modeling tutorials on excel?..would love a course on this. Or even, please recommend a good tutorial channel / website on the same
Wow. I had created an IPMT table with every period of the entire loan and added them with SUMIF. Now I just learned about this cumulative function. Thank you! Is there a more advanced excel of this version available that can compare investment with stock investing return and also track tenant payments / HOA / property tax etc. ? This excel video is excellent.
Leila, very good! one suggestion: please use the default colours in Excel for assumptions: Input cells in Cell Styles. I (also?) don't like the colours but at least it is consistent.... One other thing : the monthly % is actual the following: (1+%yr)^(1/12)-1. (since it is coumpound interest) The difference is very, very minor, maybe that's why Microsoft ingnores this even in het help of the formula assistent and also this is not mentioned in all the Excel books I have read. But there are other things in the world we should make our concerns of...;) btw no Amsterdam in 2020?
In Italy this kind of investment it is not worthing making it, for several reasons: 1 in Italy we have a low if you want to purchase a second house you have to pay 9% registration tax instead of 0,50. the cost for the realtor fee is 3%. I don't want to consider the costs just in case there are some other cost of breakage to the structure like to fixe some water pipes, to paint some walls, some dripping water problems at the roof that nowadays are very common due to the climate change with heavy dowpoors, or hail, then we have to consider the deterioration of the propriety that every year it becomes older and older. You have mentioned the fact just in case the propriety is empty for a certain period of time. but we also have to consider just in case the tenant just in case doesn't pay the rent, that nowadays in Italy is not easy to evict the tenant. or jsut in case the tenant doesn't pay the condominium expenses, in this case the landlord has to pay them. so the game is not worth the candle, this is not a good investment to make. I say this seen may experience, in any case many thanks for your vides
Excuse Ma'am. How are you? Hope you're doing great. Ma'am your information excel is too much usefull for me... Thank you so much.. Ma'am also I have a very humble request to you. Please share a one toturial about accounting e.g. (Income Statement,,, Financial Statement). Thanks.
I'm glad the tutorials are helpful. You could check out my playlist on Basic Accounting and Finance topics: ruclips.net/p/PLmHVyfmcRKywV8Bk6euT02xxtv8YVDkZs
Hi Leila, Though the accounting calculations are too confusing for me and I couldn't get proper benefit of this video however I always like to watch your videos that give me a strong backup knowledge and I really appreciate your efforts in this regard. The next thing is that I have put a request in comments on your last video which needs your attention to give a better and built-in solution to date calculations if possible or if you feel you may recommend the file I shared on a link there, please.
Excellent, Fantastic, marvelous, as usual, you are the best I feel happy every time when I watch your amazing channel god bless keep smiling happy weekend love from Egypt 🌷💗♥🌹🌼🍇🌻💚🌲🌳🌲🌳🌲🌳🌲Fantastic advice, You definitely did the right thing doing this video. 🍓🍓❤️🌹🌹🌼✔️❤️🌹🌲✅✅👍🌹🌹Awesome
Grab the file I used in the video from here 👉 pages.xelplus.com/calculate-returns-file
I watched this video more than 5 times, its valuable , thank you liela
I watched 3 Times Till Now
Nice and clear - well done Leila! Quick hint: to duplicate a formula in a cell below, instead of copying and pasting from edit mode at 12:49, just press CTRL' (that's control and apostrophe) in D51 and there it'll be! Second hint: don't rent properties to college kids unless you drastically increase maintenance expenses.
Thank you for the tips!
Amazing video. I have seen many videos from you before about other topics related to Microsoft. Little I knew that your expertise also covered the investment field. Please don't stop teaching other like myself. Congratulations.
Wow, thanks!
Hey, this is fantastic. I like how you deliver the content and the explanation you provide is superb! You teach how to fish, instead of giving the fish itself! Keep it up!
Very informative
I would like to see more accounting videos in future especially accruals , financial statements etc in detail .
Thanks 😊
Leila is killing it with her channel. Doesn't hurt that she's gorgeous and has the cutest accent.
Great as always, thank you Leila! I usually do calculation before taking an action😃. NPV also is my favorite capital budgeting technique when it comes to invest in different projects.
Very good practice :) I have a video on time value of money coming up soon in case you are interested. Stay tuned.
I've been trying to do this myself and was getting lost in the weeds. My spreadsheet was becoming more and more complicated! Mega thanks for this simple spreadsheet :) subscribed
Happy to have you aboard!
Cool worksheet! Let's make a super version that includes looking at this over a longer period of time: You have property increases, tax increases, rent increases, potentially property refurbishments, fencing, roofing, water heaters, hvac systems, plumbing or electrical for cost but I think there is also the added benefit of tax deductions.
That'd be great Robert. I'm sure we could create a nice version.
Wonderful Leila, by this you explained in a simple manner how to evaluate wide range of business opportunities.
Many thank
Maki S. Hussain
Baghdad - Iraq
Glad you like the video :)
I eagerly wait for your videos Leila. I guess no one explains such fancy excel workarounds like you do. Kudos!
Glad you like it :)
This was great to see as a finance graduate. I had no idea about an excel function that can separate principal and interest. That function should be widely known for everyone. Also the illustration showing that as you pay off the principal your ownership grows with the house. Really great watch, I'll be enrolling in your VBA udemy course very soon too! So thanks for everything you do.
They can really be useful Matthew. Looking forward to seeing you inside the course :)
I invest for living. This was a great tutorial and thanks for making it interesting and also having a downloadable file. Cheers from Ethiopia
That's great feedback especially coming from someone who has experience in this area. Means a lot. Thanks!
This is great but would like to see with appreciation of house included. That can add (or subtract) a lot!
Hi Leila! I've paused the video at 0:50 to give you my back-of-the-envelope calculation. I'm assuming a perpetuity rate of 5% which I know is entirely crazy, but it gives a ballpark result. Annual rental income of (1400x12) $16,800 / 0.05 = $336,000 which is more than 50% over the purchase price. So I am concluding it is a good investment. Now I'm going to watch the rest of your video.
How did you know I need this Leila? WOW, what a coincidence! Thank you so much.
Good timing then :) I hope it's helpful.
glad to see you are so pro in Excel . i mean your really enjoy it ...and it makes learning fun for us . 👍
Great tutorial. QUESTION : HOW DO WE FACTOR HOME APPRECIATION over time TOWARDS ROI.
Excellent Leila! You had me worried for a while with the morgage as I assumed one had the cash in the back pocket, so to speak. The next step might be a spreadsheet for a 10-year period which should take care of the issues of repairs and taxes, then one could calculate present values and IRRs. Another idea might be for business plans which have to forecast income and expenditures for small companies, as grants are usually contingent on providing such a cash flow forecast.
Very helpful and detailed video. Thank you for showing the interest and principal payment formulas. Make my life easier.
You're very welcome!
Lovely , never calculated in this way , hats off to u
Thanks Leila, this is excellent to know and the template to use. Appreciate you sharing with us. Sydney, Australia 🇦🇺 🙏🙏🙏
Glad you like it Michael. Hope the template will come in handy for you.
Thank you Leila, another subject filled with potentially lethal minefields taught brilliantly by yourself in a clear, easy to understand manner.
Wonderful! Glad you liked it.
Thank you Leila, very helpful.
Would you (or someone else) have an idea on how to correctly reflect your potential property value increase (based on historic returns) into the ROI Return?
Cheers,
Thank you so much for this video. It is a huge help to me and you explain how to use it very well.
It's important to note, as Leila does, that the monthly interest and principal payments are the *averages* over the entire period of the loan. So in the first few years you will be paying more in interest and less in principal than is shown and in the later years you will paying more towards the principal and less towards the interest.
Absolutely correct. Thanks for your input!
@@LeilaGharani Thanks for your videos, I always learn something new!
Thanks Leila, it was really helpful to learn about those formulas. Being from an engineering background it is something that we never use in excel.
I was recently having a deal for a property and was checking on how the interests and loans, etc are to be calculated. I found a few tools online but I wanted something native in excel.
That really helped me model my financial plan for acquisition.
Again, thanks a lot...
Hope you keep sharing more such videos 😊
I'm glad to hear that. All the best for your property deal.
Thank you Leila! Very, very helpful and so easy to understand. I saved the template and I will definitely use it. :)
Hey Leila; you have not kept any stone un turned. Absolutely amazing Cheers :)
Still many stones out there 😊
Thanks for the CUMIPMT fun, Leila!!
You're CUMWLC anytime :)
CUMVERYCLEVER : )
@@excelisfun Oh, CUMON you guys.
@@drsteele4749 : ) : ) : )
Hi,
Thank you Leila for your video and excel sheet, but I suppose it does not include the appreciated value of residential property atva later year hence appreciated value ( profits )of property also need to be added at certain % of return per annum basis, say 5-6% per annum hence later ROI will be better, I also agree other interest rate may spoil the party in some countries, I suppose my point is clear।
Thank you again
Bye
I love your channel. Thanks for making such a great content available for free!
My pleasure Daniel. Hope it's helpful.
I am blown away by how simple you made this for us. The tutorial is well structured, and the explanation is fantastic! Thank you once again!
PS - Can you explain Monthly Expenses > Real Estate Taxes a bit more in-depth? I'm trying to figure out if this applies in my region - Toronto Canada, and I am looking to purchase an Airbnb
Its incredible how much i learned just copying this.
Glad to hear that :)
two of my fav things in the world investing and excel, insta like you don't even have to say it ;)
Thank you for the insta like :)
Really enjoying your videos Leila! Great content, excellent tips and very clear and concise. Are you planning on doing a video on how to create a spreadsheet for tracking stocks and returns, profit and loss etc? Or maybe you already have something like this on your channel? Thank you!
Pls do video on personal Networth on the excel calculations. Thank you
Thanks mam for sharing knowledge . I am living small town of India we never calculate this.
This is a very interesting video because it doesn't talk about taking a mortgage to pay back the bank, but taking a loan from the bank. Mortgage payments would have changed the calculations because when paying mortgage, you pay more interest and less principal at the beginning (first few years). Then the interest payment is reduced and the principal is higher.
In the example here, you used a fixed rate and fixed payment, so you were able to calculate the identical payment and the ROI in every month - something that will not work if you have a mortgage.
For any loan the share of interest expense will be higher in the beginning because of the higher outstanding principal. With the formulas I used I calculated the average values for interest expense and pay down of principal over the entire term of the loan. I'm interested in the average ROI over the years not the ROI I'll make in the first few years.
@@LeilaGharani Thank you.
That’s a very good investment 😆 thank you so much for this video
Maam, can you make a video regarding the nature of Loan Amortization (or how is the computations work). Thank you for not ignoring my comment. More power to you and God bless.
Thanks a lot Leila, we really appreciate your effort
Very concise explanation of the evaluation process. Thank you.
Glad you like the explanation.
A great teacher and expert .. I like all of your videos ...
Leila, also you should take into account the annual appraisal of the home as additional revenue in the ROÍ calculation. Cool video.
👍
Finally found the content I'm looking for. Thank you for this Leila!
You're so welcome, Christian!
Thank you for this. Your tutorials are always excellent. I've subscribed to your channel. Big thumbs up too!
Very informative
I would like to know about financial feasibility study.
Thanks 😊
The video sound is pretty good, beyond my imagination
Great video! Thank You! Now what would be considered a bad ROI? At which percentage is it a bad deal?
Nice job young lady. Very informative and nicely presented.
This is FANTASTIC!!! It would be great to also see this excel coupled visually with graphs. Additionally, I would like very much to see a retirement calculator as well that takes into account inflation.
I will use this to not only calculate Rental of Poperty but also Cars.
Hi call .I'll help u with your business
You beautified the solution.
perfection in this vid.
Thanks Leila. Very educating and helpful video. Please can you do one that compares renting vs buying a property?
Informative...Will use it when i want to buy a house for investment
Hi Leila, i wonder if you have a video tutorial for small business like distribution company. Appreciate it!
worth watching, very easy to follow. best wishes.
Hi Leila
I started watching and learning from your excel tutorials recently. Your content has helped me learn a lot. Thank you, and blessings for the good work you do.
Query : do you also do financial modeling tutorials on excel?..would love a course on this. Or even, please recommend a good tutorial channel / website on the same
Wonderful explained 👏 thank you. I need How to Build a budget in Excel, please. For nonprofit organization 🙏 salaries. Fringe benefits...
Wow you are such a blessing!
Can you do a video of how to convert this spreadsheet in to form in Excel please. Thank you! Dusty
Beautiful! Very informative indeed. Thank you
Thank you - very clearly explained (as ever) and very helpful.👍
Wow. I had created an IPMT table with every period of the entire loan and added them with SUMIF. Now I just learned about this cumulative function. Thank you! Is there a more advanced excel of this version available that can compare investment with stock investing return and also track tenant payments / HOA / property tax etc. ? This excel video is excellent.
Thankyou so much for your lesson!
Again an excellent video. Congratulations Leila 👏👏👏
Thank you Frederic :)
That is easy and clear, thank you Leila
You’re welcome 😊
wow, this is outstanding. Thank you!
Great video topic! Thanks Leila. Thumbs up!!
Thanks, Wayne!
Most essential but no scope to use by me
You are great Leila, God bless you,appreciate your research
My pleasure. I hope it's helpful.
Definitely, I used to search for your new videos, I covered most of the videos, it has
helped me a lot on my routine office task.
Thank you
Excellent walk-through! Now I'll have to go find some rental property :-)
Let us know when you're successful :)
Great work, very informative and useful. You are doing great, God Bless you
Glad you like the video.
Very nice explanation thank you
Leila, very good! one suggestion: please use the default colours in Excel for assumptions: Input cells in Cell Styles. I (also?) don't like the colours but at least it is consistent.... One other thing : the monthly % is actual the following: (1+%yr)^(1/12)-1. (since it is coumpound interest) The difference is very, very minor, maybe that's why Microsoft ingnores this even in het help of the formula assistent and also this is not mentioned in all the Excel books I have read. But there are other things in the world we should make our concerns of...;) btw no Amsterdam in 2020?
True, it's good to be consistent with the coloring. I'm just not a fan of the Excel default colors. So, I decided to go with my own :)
Excellent!
Your awesome this is exactly what I was looking for -
Glad I could help!
Hi Leila!Awesome Tutorial I Have Just Learned Some New Functions Thank You :):):)
That's great. I hope they will come in handy at some point.
Thank you Leila, this was truly useful!
I'm so glad, Luis!
Very informative :) thanks for sharing!!
Thanks good video!
Very useful 👏👍
Awesome video.
So good. Thanks!
Fantastic Leila!!!!!
What about the net present value and opportunity cost, which should also be taken into account when investing?
thanks.....
A huge thank you for the info!!
Excellent video.
Another great video..many thanks
In Italy this kind of investment it is not worthing making it, for several reasons: 1 in Italy we have a low if you want to purchase a second house you have to pay 9% registration tax instead of 0,50. the cost for the realtor fee is 3%. I don't want to consider the costs just in case there are some other cost of breakage to the structure like to fixe some water pipes, to paint some walls, some dripping water problems at the roof that nowadays are very common due to the climate change with heavy dowpoors, or hail, then we have to consider the deterioration of the propriety that every year it becomes older and older. You have mentioned the fact just in case the propriety is empty for a certain period of time. but we also have to consider just in case the tenant just in case doesn't pay the rent, that nowadays in Italy is not easy to evict the tenant. or jsut in case the tenant doesn't pay the condominium expenses, in this case the landlord has to pay them. so the game is not worth the candle, this is not a good investment to make. I say this seen may experience, in any case many thanks for your vides
Many thanks for sharing your experience, Massimo!
excellent video and great blog
Excuse Ma'am. How are you?
Hope you're doing great. Ma'am your information excel is too much usefull for me... Thank you so much.. Ma'am also I have a very humble request to you. Please share a one toturial about accounting e.g. (Income Statement,,, Financial Statement). Thanks.
I'm glad the tutorials are helpful. You could check out my playlist on Basic Accounting and Finance topics: ruclips.net/p/PLmHVyfmcRKywV8Bk6euT02xxtv8YVDkZs
Hi Leila,
Though the accounting calculations are too confusing for me and I couldn't get proper benefit of this video however I always like to watch your videos that give me a strong backup knowledge and I really appreciate your efforts in this regard.
The next thing is that I have put a request in comments on your last video which needs your attention to give a better and built-in solution to date calculations if possible or if you feel you may recommend the file I shared on a link there, please.
Thanks for sharing the UDF version of datedif. I also cover custom formulas with VBA for calculating age in my macros course.
@@LeilaGharani Can you please share a link for such videos or files that you are too promote? I mean for age calculations etc.
spot on
Excellent, Fantastic, marvelous, as usual, you are the best I feel happy every time when I watch your amazing channel god bless keep smiling happy weekend love from Egypt 🌷💗♥🌹🌼🍇🌻💚🌲🌳🌲🌳🌲🌳🌲Fantastic advice, You definitely did the right thing doing this video. 🍓🍓❤️🌹🌹🌼✔️❤️🌹🌲✅✅👍🌹🌹Awesome
Ausgezeichnet, Liebe Leila, Danke Viele Grüße 💞
Danke liebe Katerina 🤗