Lancaster Deal Analysis
Let's look at deal analysis for Lancaster, 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 Lancaster, California Nomad™ Property with 10% Higher Rents
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Typical Lancaster, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$405,167
|
|
Purchase Price
|
|
$405,167
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$20,258
|
|
Closing Costs
|
1.000%
|
$4,052
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$18,060
|
|
Total Invested
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$42,370
|
|
Mortgage
|
|
Mortgage Amount
|
|
$384,908.65
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$272.64
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,061
$3060.75
|
|
Other Income
|
|
$0
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|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$1,102
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Property Taxes
|
1.180%
|
$4,781
|
|
Property Insurance
|
0.173%
|
$701
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
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Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
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|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$60,775
|
|
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 |
$417,322 |
$429,842 |
$442,737 |
$456,019 |
$469,700 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$12,155 |
$12,520 |
$12,895 |
$13,282 |
$13,681 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,061 |
$3,153 |
$3,247 |
$3,345 |
$3,445 |
| 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 |
$3,061 |
$3,153 |
$3,247 |
$3,345 |
$3,445 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$92 |
$95 |
$97 |
$100 |
$103 |
| Monthly Gross Operating Income |
$2,969 |
$3,058 |
$3,150 |
$3,244 |
$3,342 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$36,729 |
$37,831 |
$38,966 |
$40,135 |
$41,339 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$36,729 |
$37,831 |
$38,966 |
$40,135 |
$41,339 |
| Annual Vacancy Dollar |
$1,102 |
$1,135 |
$1,169 |
$1,204 |
$1,240 |
| Annual Gross Operating Income |
$35,627 |
$36,696 |
$37,797 |
$38,931 |
$40,099 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.180% |
1.180% |
1.180% |
1.180% |
1.180% |
| Property Taxes Dollar |
$4,781 |
$4,924 |
$5,072 |
$5,224 |
$5,381 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$701 |
$722 |
$744 |
$766 |
$789 |
| 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 |
$3,563 |
$3,670 |
$3,780 |
$3,893 |
$4,010 |
| 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 |
$9,045 |
$9,316 |
$9,595 |
$9,883 |
$10,180 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$26,583 |
$27,380 |
$28,201 |
$29,047 |
$29,919 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$29,195 |
$29,195 |
$29,195 |
$29,195 |
$29,195 |
| Principal |
$4,302 |
$4,590 |
$4,898 |
$5,226 |
$5,576 |
| Interest |
$24,892 |
$24,604 |
$24,297 |
$23,969 |
$23,619 |
| Loan Balance at End of Year |
$380,606 |
$376,016 |
$371,118 |
$365,893 |
$360,317 |
| 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 |
$3,272 |
$3,272 |
$3,272 |
$3,272 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$36,716 |
$53,825 |
$71,618 |
$90,126 |
$109,383 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$5,884 |
-$5,086 |
-$4,265 |
-$3,419 |
$724 |
| Monhtly Cash Flow |
-$490 |
-$424 |
-$355 |
-$285 |
$60 |
| Cash on Cash Return on Investment |
-0.139% |
-0.120% |
-0.101% |
-0.081% |
0.017% |
| 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 |