Los Angeles Deal Analysis
Let's look at deal analysis for Los Angeles, 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 Los Angeles, California Nomad™ Property with 10% Higher Rents
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Typical Los Angeles, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$930,981
|
|
Purchase Price
|
|
$930,981
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$46,549
|
|
Closing Costs
|
1.000%
|
$9,310
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$133,875
|
|
Total Invested
|
|
$189,734
|
|
Mortgage
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|
Mortgage Amount
|
|
$884,431.95
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$626.47
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$5,544
$5544.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
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|
Vacancy Rate
|
3.000%
|
$1,996
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|
Property Taxes
|
0.766%
|
$7,131
|
|
Property Insurance
|
0.173%
|
$1,611
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$139,647
|
|
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 |
$958,910 |
$987,678 |
$1,017,308 |
$1,047,827 |
$1,079,262 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$27,929 |
$28,767 |
$29,630 |
$30,519 |
$31,435 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$5,544 |
$5,710 |
$5,882 |
$6,058 |
$6,240 |
| 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 |
$5,544 |
$5,710 |
$5,882 |
$6,058 |
$6,240 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$166 |
$171 |
$176 |
$182 |
$187 |
| Monthly Gross Operating Income |
$5,378 |
$5,539 |
$5,705 |
$5,876 |
$6,053 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$66,528 |
$68,524 |
$70,580 |
$72,697 |
$74,878 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$66,528 |
$68,524 |
$70,580 |
$72,697 |
$74,878 |
| Annual Vacancy Dollar |
$1,996 |
$2,056 |
$2,117 |
$2,181 |
$2,246 |
| Annual Gross Operating Income |
$64,532 |
$66,468 |
$68,462 |
$70,516 |
$72,632 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.766% |
0.766% |
0.766% |
0.766% |
0.766% |
| Property Taxes Dollar |
$7,131 |
$7,345 |
$7,566 |
$7,793 |
$8,026 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,611 |
$1,659 |
$1,709 |
$1,760 |
$1,813 |
| 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 |
$6,453 |
$6,647 |
$6,846 |
$7,052 |
$7,263 |
| 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 |
$15,195 |
$15,651 |
$16,121 |
$16,604 |
$17,102 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$49,337 |
$50,817 |
$52,342 |
$53,912 |
$55,529 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$67,083 |
$67,083 |
$67,083 |
$67,083 |
$67,083 |
| Principal |
$9,886 |
$10,548 |
$11,254 |
$12,008 |
$12,812 |
| Interest |
$57,197 |
$56,535 |
$55,829 |
$55,075 |
$54,271 |
| Loan Balance at End of Year |
$874,546 |
$863,999 |
$852,745 |
$840,737 |
$827,926 |
| 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 |
$7,518 |
$7,518 |
$7,518 |
$7,518 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$84,364 |
$123,679 |
$164,563 |
$207,090 |
$251,337 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$25,263 |
-$23,783 |
-$22,259 |
-$20,688 |
-$11,553 |
| Monhtly Cash Flow |
-$2,105 |
-$1,982 |
-$1,855 |
-$1,724 |
-$963 |
| Cash on Cash Return on Investment |
-0.133% |
-0.125% |
-0.117% |
-0.109% |
-0.061% |
| 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 |