Enter Renovation Costs

Enter the total costs for the proposed renovations.

Enter the required rate of return on invested capital for the renovation costs.  It's reasonable to assume that if you renovate the property - you'll get a return on those funds.  The return in this instance is calculated on the increased revenue from a stabilized property - and the difference in adjusted basis at the time  of resale.  Make an entry for the target rate of return.  The model will alert you if the property fails to return the result as specified.

Select the date that the renovations will begin.  The model will draw down these funds on this date.