Tempe Deal Analysis
Let's look at deal analysis for Tempe, AZ 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 Tempe, Arizona Rental Property
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Typical 20% Down Payment Tempe, Arizona Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$429,678
|
|
Purchase Price
|
|
$429,678
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$85,936
|
|
Closing Costs
|
1.000%
|
$4,297
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$21,049
|
|
Total Invested
|
|
$111,282
|
|
Mortgage
|
|
Mortgage Amount
|
|
$343,742.40
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,578
$2577.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$928
|
|
Property Taxes
|
0.659%
|
$2,832
|
|
Property Insurance
|
0.442%
|
$1,899
|
|
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%
|
$64,452
|
|
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 |
$442,568 |
$455,845 |
$469,521 |
$483,606 |
$498,115 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$12,890 |
$13,277 |
$13,675 |
$14,086 |
$14,508 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,578 |
$2,655 |
$2,735 |
$2,817 |
$2,901 |
| 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 |
$2,578 |
$2,655 |
$2,735 |
$2,817 |
$2,901 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$77 |
$80 |
$82 |
$85 |
$87 |
| Monthly Gross Operating Income |
$2,500 |
$2,575 |
$2,653 |
$2,732 |
$2,814 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$30,933 |
$31,861 |
$32,817 |
$33,801 |
$34,815 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$30,933 |
$31,861 |
$32,817 |
$33,801 |
$34,815 |
| Annual Vacancy Dollar |
$928 |
$956 |
$985 |
$1,014 |
$1,044 |
| Annual Gross Operating Income |
$30,005 |
$30,905 |
$31,832 |
$32,787 |
$33,771 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.659% |
0.659% |
0.659% |
0.659% |
0.659% |
| Property Taxes Dollar |
$2,832 |
$2,917 |
$3,004 |
$3,094 |
$3,187 |
| Insurance Percent |
0.442% |
0.442% |
0.442% |
0.442% |
0.442% |
| Insurance Dollar |
$1,899 |
$1,956 |
$2,015 |
$2,075 |
$2,138 |
| 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 |
$3,001 |
$3,091 |
$3,183 |
$3,279 |
$3,377 |
| 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 |
$7,731 |
$7,963 |
$8,202 |
$8,448 |
$8,702 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$22,274 |
$22,942 |
$23,630 |
$24,339 |
$25,069 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$27,443 |
$27,443 |
$27,443 |
$27,443 |
$27,443 |
| Principal |
$3,492 |
$3,744 |
$4,015 |
$4,305 |
$4,616 |
| Interest |
$23,951 |
$23,699 |
$23,428 |
$23,138 |
$22,827 |
| Loan Balance at End of Year |
$340,251 |
$336,506 |
$332,491 |
$328,186 |
$323,570 |
| 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 |
$102,318 |
$119,339 |
$137,029 |
$155,420 |
$174,545 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$5,169 |
-$4,501 |
-$3,813 |
-$3,104 |
-$2,374 |
| Monhtly Cash Flow |
-$431 |
-$375 |
-$318 |
-$259 |
-$198 |
| Cash on Cash Return on Investment |
-0.046% |
-0.040% |
-0.034% |
-0.028% |
-0.021% |
| 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 |