Real estate invest calculator

Author: Tianwen (chutianwen123@gmail.com)

Introduction

This is a simple calculator to help you visualize investment details like net-income, yield rate and etc. By setting target parameters, you can clearly see how investment looks like and even find the better one by comparison. You will understand why people saying "mortgage is the most common way of applying financial leverage"(CAREFUL, sometimes worse).

Requirement

Strongly recommend to install the latest Anaconda in local environment, so you can rebuild the same environment by

conda env create -f environment.yml

If you are a conda hater, then just make sure numpy, matplot are installed in python path.

Manual

Modify investment parameters inside ./app.py as described in the comment, then

# if mac
source activate py37
# if windows
activate py37
python app.py

You expect to see 1 or 4 images created in the project root directory depending on if you set a treatment solution for comparison study. They should look like below

• 15-year_mortgage_self_metrics.png (control)

if you do set treatment

• full_cash_self_metrics.png (treatment)
• Annual_15-year_mortgage_vs_full_cash_metrics.png
• Accumulative_15-year_mortgage_vs_full_cash_metrics.png

Usually good comparison study is like AB testing, you only have one "treatment(invest solution difference)" like

• mortagae vs full cash on same house: treatment on financial plan
• shorter term mortgage vs longer term mortgage on same house: treatment on financial plan
• A house vs B house with same(or similar) mortgage plan like 15 year fixed rate: treatment on house selection

But nothing stops you to apply compound treatment of house selection plus financial plan.