Value Add Model Issue

WSO Community - 

I’m working on a value add model trying to get my modeling down Pat for interview tests and currently practicing on a MF Value Add model. I have the cash on cash formula running through and in the sale year, the cash on cash is coming out to 200%+. Tbis feels wildly incorrect, can anyone lead me to what may be the problem? Happy to provide a screenshot of the formulas I’m working with for my COC line item 


Yep - for sure the sale price included.

Question re COC to all of you: when you calculate COC for a say 5 year period do you

  1. take your monthly / quarterly COC and calculate an average over the whole hold period or
  2. take monthly / quarterly COC and calculate a value per year and then create the average of the 5 years?
  3. Different topic: What do you do with time periods where equity needs to be paid in because of vacancy e.g.. do you just increase the equity basis or what do you do?



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