The significance of splitting liquid and non-liquid gains in the Residential Proforma spreadsheet lies in the different characteristics of these two types of assets. Liquid assets can be easily converted into cash at any given time, providing immediate revenue. On the other hand, non-liquid assets are tied into the property until sale, meaning they cannot be readily accessed for immediate financial needs. By splitting these gains, the spreadsheet provides a clearer picture of the immediate and future financial outlook of the investment.
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Liquid and non-liquid gains were split instead of included collectively since liquid assets can be pulled out at any given time, as opposed to non-liquid assets that are tied into the property until sale. This tells you how much revenue you'll receive without the need to rely on non-liquid assets. Projected sales price provides the full number. If the cash flow, cash yield, or IRR are negative, they will show up as red.
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