Birmingham Deal Analysis
Let's look at deal analysis for Birmingham, AL and for 
32 10 20% Down Rental Properties (no Owner-Occupant).
The analysis is based on The World's Greatest Real Estate Deal Analysis Spreadsheet™ (shown above)... a free spreadsheet download you can use to analyze your own deals.
Typical 20% Down Payment Birmingham, Alabama Rental Property
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Typical 20% Down Payment Birmingham, Alabama Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$89,901
|
|
Purchase Price
|
|
$89,901
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$17,980
|
|
Closing Costs
|
1.000%
|
$899
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$18,879
|
|
Mortgage
|
|
Mortgage Amount
|
|
$71,920.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$849
$849.45
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$306
|
|
Property Taxes
|
0.700%
|
$629
|
|
Property Insurance
|
1.958%
|
$1,760
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
|
|
Land Value
|
15.000%
|
$13,485
|
|
Property Type (C or R)
|
R
|
27.5
|
|
Effective Income Tax Rate
|
15.000%
|
|
| Property Value |
1 |
2 |
3 |
4 |
5 |
| ARV at End of Year |
$92,598 |
$95,376 |
$98,237 |
$101,184 |
$104,220 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$2,697 |
$2,778 |
$2,861 |
$2,947 |
$3,036 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$849 |
$875 |
$901 |
$928 |
$956 |
| Monthly Other Income Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Monthly Gross Potential Income |
$849 |
$875 |
$901 |
$928 |
$956 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$25 |
$26 |
$27 |
$28 |
$29 |
| Monthly Gross Operating Income |
$824 |
$849 |
$874 |
$900 |
$927 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$10,193 |
$10,499 |
$10,814 |
$11,139 |
$11,473 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$10,193 |
$10,499 |
$10,814 |
$11,139 |
$11,473 |
| Annual Vacancy Dollar |
$306 |
$315 |
$324 |
$334 |
$344 |
| Annual Gross Operating Income |
$9,888 |
$10,184 |
$10,490 |
$10,804 |
$11,129 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.700% |
0.700% |
0.700% |
0.700% |
0.700% |
| Property Taxes Dollar |
$629 |
$648 |
$668 |
$688 |
$708 |
| Insurance Percent |
1.958% |
1.958% |
1.958% |
1.958% |
1.958% |
| Insurance Dollar |
$1,760 |
$1,813 |
$1,867 |
$1,923 |
$1,981 |
| HOA Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| HOA Dues Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Utilities Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Utilities Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Other Expense 1 Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Other Expense 1 Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Other Expense 2 Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Other Expense 2 Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Maintenance Percent |
10.000% |
10.000% |
10.000% |
10.000% |
10.000% |
| Maintenance Dollar |
$989 |
$1,018 |
$1,049 |
$1,080 |
$1,113 |
| CapEx Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| CapEx Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Property Management Percent |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
| Property Management Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Operating Expenses |
$3,378 |
$3,480 |
$3,584 |
$3,692 |
$3,802 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$6,509 |
$6,705 |
$6,906 |
$7,113 |
$7,326 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$5,742 |
$5,742 |
$5,742 |
$5,742 |
$5,742 |
| Principal |
$731 |
$783 |
$840 |
$901 |
$966 |
| Interest |
$5,011 |
$4,958 |
$4,902 |
$4,841 |
$4,776 |
| Loan Balance at End of Year |
$71,190 |
$70,407 |
$69,567 |
$68,666 |
$67,700 |
| Loan-To-Value |
76.881% |
73.820% |
70.815% |
67.862% |
64.959% |
| Private Mortgage Insurance (PMI) Rate |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
| Private Mortgage Insurance Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$21,408 |
$24,969 |
$28,670 |
$32,518 |
$36,520 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$767 |
$963 |
$1,164 |
$1,371 |
$1,584 |
| Monhtly Cash Flow |
$64 |
$80 |
$97 |
$114 |
$132 |
| Cash on Cash Return on Investment |
0.041% |
0.051% |
0.062% |
0.073% |
0.084% |
| Cap Rate |
|
|
|
|
|
| DSCR |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Negative Cash Flow |
$0 |
$0 |
$0 |
$0 |
$0 |
| Cumulative Negative Cash Flow |
$0 |
$0 |
$0 |
$0 |
$0 |