Investment page for standard investment purchases — every assumption explained.

Price of Property: what the property would be bought for today.

Closing Costs: any number 100 or above = dollar amount; any number under 100 = percentage of price. Closing Costs Expense (for tax purposes): the portion of closing costs expensed immediately in the initial year. Remaining (unexpensed) closing costs are capitalized — added to the property's cost basis for capital gain calculation at sale. Typical practice: leave Closing Costs Expense at zero (fully capitalize all closing costs).

Acquisition Date: any month and year (e.g. 1.10 = January 2010).

Holding Period: 1 to 99 years — 10 years is common default for standard analysis.

Inflation Rate: a global rate available to link other assumptions to throughout the file — entering it here does not automatically apply it anywhere; individual assumptions choose whether to link to it (e.g. via "Linked to Inflation" growth methods).

Sales Price Method: determines how the sale price is calculated at the end of the holding period — options include various Capitalize NOI methods, Continuous Appreciation, Specified Price, or No Sale. See the dedicated Sales Price Method movies for full detail on each option. Sale Price Parameter: the rate or percentage used by the chosen method (e.g. 10% cap rate for Capitalize Current NOI).

Selling Costs: under 100 = percentage of sale price; 100 or above = dollar amount (e.g. 6% typical).

Selling Costs Expense (for tax purposes): the portion of selling costs expensed for tax purposes at sale. Remaining (capitalized) selling costs are subtracted from sale price when computing capital gain. Typical practice: leave at zero so all selling costs reduce the capital gain calculation.