Hey Monkeys - Currently working through some modeling tests. I'm having trouble modeling out yearly rent growth monthly if the yearly growth rates vary. Probably a stupid question but what would the best formula be for this? Thanks!
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keep it simple - 1. you have to create a monthly cash flow.
2. keep track of your inflation rate in a row above the cash flow. Each month will have an inflation rate. You'll have to divide annual inflation rate into monthly inflation rate.
3. Make new row or add to existing unit rent row: inflation rent.
Yes it will be pretty manual process but who cares you only have to do it once. You can do a =match in the inflation row and link it to an inflation table elsewhere if you want
The easiest formula for this is:
=monthly revenue*(1+sumif(year range,year,growth rate for year))^(1/12)
No one uses sumif except for inbreds
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