Irvine Deal Analysis
Let's look at deal analysis for Irvine, CA and for 
15 Buy 10 Nomads™ with 10% Higher Rents.
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 Irvine, California Nomad™ Property with 10% Higher Rents
|
Typical Irvine, California Nomad™ Property with 10% Higher Rents
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,115,813
|
|
Purchase Price
|
|
$1,115,813
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$55,791
|
|
Closing Costs
|
1.000%
|
$11,158
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$209,710
|
|
Total Invested
|
|
$276,659
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,060,022.35
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$750.85
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$6,410
$6410.25
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$2,308
|
|
Property Taxes
|
0.861%
|
$9,607
|
|
Property Insurance
|
0.173%
|
$1,930
|
|
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%
|
$167,372
|
|
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 |
$1,149,287 |
$1,183,766 |
$1,219,279 |
$1,255,857 |
$1,293,533 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$33,474 |
$34,479 |
$35,513 |
$36,578 |
$37,676 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$6,410 |
$6,603 |
$6,801 |
$7,005 |
$7,215 |
| 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 |
$6,410 |
$6,603 |
$6,801 |
$7,005 |
$7,215 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$192 |
$198 |
$204 |
$210 |
$216 |
| Monthly Gross Operating Income |
$6,218 |
$6,404 |
$6,597 |
$6,795 |
$6,998 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$76,923 |
$79,231 |
$81,608 |
$84,056 |
$86,578 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$76,923 |
$79,231 |
$81,608 |
$84,056 |
$86,578 |
| Annual Vacancy Dollar |
$2,308 |
$2,377 |
$2,448 |
$2,522 |
$2,597 |
| Annual Gross Operating Income |
$74,615 |
$76,854 |
$79,159 |
$81,534 |
$83,980 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.861% |
0.861% |
0.861% |
0.861% |
0.861% |
| Property Taxes Dollar |
$9,607 |
$9,895 |
$10,192 |
$10,498 |
$10,813 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,930 |
$1,988 |
$2,048 |
$2,109 |
$2,173 |
| 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 |
$7,462 |
$7,685 |
$7,916 |
$8,153 |
$8,398 |
| 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 |
$18,999 |
$19,569 |
$20,156 |
$20,761 |
$21,384 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$55,616 |
$57,285 |
$59,003 |
$60,773 |
$62,597 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$80,401 |
$80,401 |
$80,401 |
$80,401 |
$80,401 |
| Principal |
$11,848 |
$12,642 |
$13,488 |
$14,392 |
$15,355 |
| Interest |
$68,553 |
$67,759 |
$66,912 |
$66,009 |
$65,045 |
| Loan Balance at End of Year |
$1,048,174 |
$1,035,533 |
$1,022,044 |
$1,007,653 |
$992,297 |
| Loan-To-Value |
91.202% |
87.478% |
83.824% |
80.236% |
76.712% |
| Private Mortgage Insurance (PMI) Rate |
0.850% |
0.850% |
0.850% |
0.850% |
|
| Private Mortgage Insurance Dollar |
$9,010 |
$9,010 |
$9,010 |
$9,010 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$101,113 |
$148,233 |
$197,235 |
$248,205 |
$301,236 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$33,795 |
-$32,126 |
-$30,408 |
-$28,638 |
-$17,804 |
| Monhtly Cash Flow |
-$2,816 |
-$2,677 |
-$2,534 |
-$2,386 |
-$1,484 |
| Cash on Cash Return on Investment |
-0.122% |
-0.116% |
-0.110% |
-0.104% |
-0.064% |
| 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 |