Fix and Flip — Example 1

FIX and FLIP for example 1 (w 20% down APR 6%) 6 month creation of DELTA EQUITY using leverage w a loan

SP — SALES PRICE at purchase — $

DP — Downpayment (%) — 20% of SP

DP — Downpayment — $

PV — Balance owing on the loan (SP − DP) — $

APR — ANNUAL INTEREST (% / year)

IR — INTEREST RATE per cycle (APR ÷ 12) (% / month)

PMT — Payment amount — $

AMORTIZATION SCHEDULE

N Time	PV BALANCE $$$ owed	APR annual % rate	IR interest per cycle	PMT Payment cash flow out CFO	Interest $$$ owed to LENDER	Principal Reduction Amount	FV new balance owing lender = future value
START begin month BOM 1
End Of Month EOM 1
note the prior month FV becomes the new PV & begins the next month
EOM 2
EOM 3
EOM 4
EOM 5
EOM 6

DELTA EQUITY — exit after 6 months

FV — Amount OWING @ end of 6 months — $

EXIT PRICE — $

EQUITY at SALE (Exit − FV) — $

Interest = PV × IR. Principal = PMT − Interest. FV = PV − Principal. Equity at sale = Exit price − final FV. Green / red cells match the lesson answer key.