Investor Scenario Subtraction Worksheet

This worksheet performs one narrow subtraction task for a property investor. Supply a user scenario value, renovation reserve, additional reserve, and profit target. The signed remainder records what is left after those three deductions. It is not a property value, affordability result, or recommended offer.

Calculation

Let V be the user scenario value, R_v the renovation reserve, R_a the additional reserve, and P the profit target:

$R = V - R_v - R_a - P$

The total deductions and remainder percentage make the entered assumptions easier to audit:

$\text{total deductions} = R_v + R_a + P$

$\text{remainder percentage} = \frac{R}{V} \times 100\%$

The user scenario value must be greater than zero, and reserves cannot be negative. A negative remainder remains negative; it is not silently changed to zero.

Recomputed example

With a user scenario value of $350,000, renovation reserve of $25,000, additional reserve of $10,000, and profit target of $30,000:

• total deductions are 25,000+10,000+30,000= $65,000.00;
• signed remainder is 350,000-65,000= $285,000.00;
• remainder percentage is 285,000/350,000×100 =81.428571…%, displayed as 81.43%.

Audit the assumptions, not just the remainder

Every input is a user-defined scenario assumption. Reserve categories may overlap, so check that the same expected cost is not entered under renovation and additional reserves. A negative result means deductions exceed the scenario value; it is not a signal to substitute zero or to proceed with a transaction.

The output excludes financing, tax, inspection, legal, resale, and local-market judgments unless you have already reflected them in your own inputs. The worksheet does not appraise the property or say whether a transaction is suitable. Validate the starting value and cost assumptions through the appropriate valuation, inspection, financing, and legal processes.

For separate payment arithmetic, use the mortgage calculator. Its result does not validate the scenario value or remainder on this page.

Sources and limits

• The Appraisal Foundation, Uniform Standards of Professional Appraisal Practice — Version: 2024 USPAP continuing until the next edition; page at access. It identifies appraisal as a standards-governed valuation practice; it does not support this subtraction identity as an appraisal or offer formula.
• Consumer Financial Protection Bureau, Explore interest rates — illustrates that actual home-financing costs depend on current loan and borrower facts; it does not validate a property value or offer formula.

Keep the scenario remainder distinct from an offer

Record user scenario value and each reserve or profit target beside the signed remainder. Compare reserves with value fixed. This subtraction does not establish market value or recommend a bid; a negative result describes your entered assumptions rather than a negative house price.