The Buy Hold Worksheet in Action

Let's look at the same $125,000 property using the Terms Worksheet: Buy & Hold (see the chart on the facing page). Again, the purchase terms are described at the top of the worksheet, with subworksheets below to get the primary numbers. Since you are following the Millionaire Real Estate Investors' guidance, you will need to get a 20 percent discount on the property ($25,000) and therefore will offer $100,000 to buy it. You have $28,000 to invest, and so you will be able to put 20 percent down ($20,000) and finance 80 percent ($80,000).

As in the Buy & Sell Model, your Cost of Purchase is $925 and your Cost of Repair is $7,095. Since you will be holding the property and renting it, you will not be dealing with either closing costs for a resale or carrying costs for the holding period. You will have ongoing carrying costs, but they will be paid from the rental income.

The Net Operating Income Subworksheet is the place where your analysis of the investment must be sharp. A quick glance reveals that

Terms Worksheet: Buy & Hold

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