Module 10 — Underwriting: Income & Expenses

Module 10 — Underwriting: Income & Expenses

Topic 10.1: Building Your Underwriting Tool: Setup

It's time to become a financial analyst. Open a blank Google Sheet or Excel file. We will build the exact tool you'll use to analyze your own deals. Refer to the underwriting_template_instructions.md file for the structure.

Expert Action: In your spreadsheet, create the first section: "Purchase & Loan Information." Create rows for "Purchase Price," "Down Payment %," "Down Payment Amount," and "Loan Amount."

Let's plug in the numbers for 4521 Primrose Lane. Alex negotiated the price down to $180,000. They are putting 25% down.

  • Cell B1 (Purchase Price): 180000
  • Cell B2 (Down Payment %): 0.25
  • Cell B3 (Down Payment Amount): =B1*B2 (This should equal $45,000)
  • Cell B4 (Loan Amount): =B1-B3 (This should equal $135,000)

Mental Model: Every deal s