What insights can be gained from the Residential Proforma spreadsheet regarding the profitability of a real estate investment over a ten-year period?

The Residential Proforma spreadsheet can be used to plan different scenarios for real estate investments by adjusting various parameters. For instance, you can modify the loan amount, term in years, and interest rate on the Amortization sheet to see how these changes impact monthly payments and the duration of repayment. You can also experiment with making extra monthly payments to see how that affects the loan repayment schedule. This allows you to simulate different financial scenarios and assess the profitability of a real estate investment under these conditions.

The Amortization sheet in the Residential Proforma spreadsheet provides a detailed monthly loan schedule based on the loan amount, term in years, and interest rate. By adjusting these details in the Decision sheet, users can understand how changes in loan terms will affect their monthly payments and the overall duration of the loan repayment. For instance, the sheet can show how making extra monthly payments can shorten the loan term. This helps users to make informed decisions about their loan repayments.