I am trying to duplicate the results found on a real estate website that
shows the equity buildup over a period of 20 years based on purchasing a
$200,000 property every two years which appreciates at 5% with a 10%
down payment. Every 2 years you would take an equity loan of $20,000
from the previous property to purchase the next. The calculation also
seems to take into account the amount of equity gained by paying down
the loan. The numbers that are used in the calculation a

Code:
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200000 Initial value
5 % Rate of growth
7 % Annual interest rate
10 % Down payment
0 % Misc. expenses, ie closing, fixing, holding
20000 Total investment
2 Number of years between reinvestments
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The results of the calculation a
Code:
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Results
Time years Net Equity

2 $44,289.09
4 $98,076.20
6 $217,185.30
8 $480,947.01
10 $1,065,035.38
12 $2,358,472.64
14 $5,222,730.91
16 $11,565,501.21
18 $25,611,278.93
20 $56,715,017.95
--------------------

I’m no expert at real estate formulas but I do think of myself as
pretty good at it and I’ve written a number of formulas and
calculations that prove out certain theoretical returns but this one
has me stumped. The website itself is
http://www.taxloopholes.com/PUBRealE...lculate=y#calc


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JimDandy
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