Berkeley Deal Analysis
Let's look at deal analysis for Berkeley, CA 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 Berkeley, California Rental Property
|
Typical 20% Down Payment Berkeley, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,262,867
|
|
Purchase Price
|
|
$1,262,867
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$252,573
|
|
Closing Costs
|
1.000%
|
$12,629
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$282,539
|
|
Total Invested
|
|
$547,741
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,010,293.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$6,000
$5999.70
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$2,160
|
|
Property Taxes
|
0.852%
|
$10,760
|
|
Property Insurance
|
0.173%
|
$2,185
|
|
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%
|
$189,430
|
|
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 |
$1,300,753 |
$1,339,776 |
$1,379,969 |
$1,421,368 |
$1,464,009 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$37,886 |
$39,023 |
$40,193 |
$41,399 |
$42,641 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$6,000 |
$6,180 |
$6,365 |
$6,556 |
$6,753 |
| 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 |
$6,000 |
$6,180 |
$6,365 |
$6,556 |
$6,753 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$180 |
$185 |
$191 |
$197 |
$203 |
| Monthly Gross Operating Income |
$5,820 |
$5,994 |
$6,174 |
$6,359 |
$6,550 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$71,996 |
$74,156 |
$76,381 |
$78,672 |
$81,033 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$71,996 |
$74,156 |
$76,381 |
$78,672 |
$81,033 |
| Annual Vacancy Dollar |
$2,160 |
$2,225 |
$2,291 |
$2,360 |
$2,431 |
| Annual Gross Operating Income |
$69,837 |
$71,932 |
$74,090 |
$76,312 |
$78,602 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.852% |
0.852% |
0.852% |
0.852% |
0.852% |
| Property Taxes Dollar |
$10,760 |
$11,082 |
$11,415 |
$11,757 |
$12,110 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$2,185 |
$2,250 |
$2,318 |
$2,387 |
$2,459 |
| 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 |
$6,984 |
$7,193 |
$7,409 |
$7,631 |
$7,860 |
| 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 |
$19,928 |
$20,526 |
$21,142 |
$21,776 |
$22,429 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$49,908 |
$51,406 |
$52,948 |
$54,536 |
$56,172 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$80,658 |
$80,658 |
$80,658 |
$80,658 |
$80,658 |
| Principal |
$10,263 |
$11,005 |
$11,800 |
$12,653 |
$13,568 |
| Interest |
$70,395 |
$69,654 |
$68,858 |
$68,005 |
$67,090 |
| Loan Balance at End of Year |
$1,000,031 |
$989,026 |
$977,226 |
$964,573 |
$951,005 |
| 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 |
$300,722 |
$350,749 |
$402,743 |
$456,795 |
$513,004 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$30,750 |
-$29,252 |
-$27,710 |
-$26,122 |
-$24,486 |
| Monhtly Cash Flow |
-$2,562 |
-$2,438 |
-$2,309 |
-$2,177 |
-$2,040 |
| Cash on Cash Return on Investment |
-0.056% |
-0.053% |
-0.051% |
-0.048% |
-0.045% |
| 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 |