Modesto Deal Analysis
Let's look at deal analysis for Modesto, 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 Modesto, California Nomad™ Property with 10% Higher Rents
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Typical Modesto, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
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Percents
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Dollars/#
|
|
ARV
|
|
$401,022
|
|
Purchase Price
|
|
$401,022
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$20,051
|
|
Closing Costs
|
1.000%
|
$4,010
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$22,678
|
|
Total Invested
|
|
$46,739
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Mortgage
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|
Mortgage Amount
|
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$380,970.90
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Mortgage Interest Rate
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6.500%
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|
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Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$269.85
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
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|
Monthly Rent
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|
$2,772
$2772.00
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Other Income
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|
$0
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Annual Expenses
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Vacancy Rate
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3.000%
|
$998
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Property Taxes
|
0.768%
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$3,080
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Property Insurance
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0.173%
|
$694
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
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|
Other Expenses 2
|
|
$0
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Maintenance
|
10.000%
|
|
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CapEx
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|
$0
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Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$60,153
|
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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 |
$413,053 |
$425,444 |
$438,208 |
$451,354 |
$464,894 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$12,031 |
$12,392 |
$12,763 |
$13,146 |
$13,541 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,772 |
$2,855 |
$2,941 |
$3,029 |
$3,120 |
| 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 |
$2,772 |
$2,855 |
$2,941 |
$3,029 |
$3,120 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$83 |
$86 |
$88 |
$91 |
$94 |
| Monthly Gross Operating Income |
$2,689 |
$2,770 |
$2,853 |
$2,938 |
$3,026 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$33,264 |
$34,262 |
$35,290 |
$36,348 |
$37,439 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$33,264 |
$34,262 |
$35,290 |
$36,348 |
$37,439 |
| Annual Vacancy Dollar |
$998 |
$1,028 |
$1,059 |
$1,090 |
$1,123 |
| Annual Gross Operating Income |
$32,266 |
$33,234 |
$34,231 |
$35,258 |
$36,316 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.768% |
0.768% |
0.768% |
0.768% |
0.768% |
| Property Taxes Dollar |
$3,080 |
$3,172 |
$3,267 |
$3,365 |
$3,466 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$694 |
$715 |
$736 |
$758 |
$781 |
| 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 |
$3,227 |
$3,323 |
$3,423 |
$3,526 |
$3,632 |
| 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 |
$7,000 |
$7,210 |
$7,427 |
$7,649 |
$7,879 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$25,266 |
$26,024 |
$26,805 |
$27,609 |
$28,437 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$28,896 |
$28,896 |
$28,896 |
$28,896 |
$28,896 |
| Principal |
$4,258 |
$4,543 |
$4,848 |
$5,172 |
$5,519 |
| Interest |
$24,638 |
$24,353 |
$24,048 |
$23,724 |
$23,377 |
| Loan Balance at End of Year |
$376,713 |
$372,169 |
$367,321 |
$362,149 |
$356,630 |
| 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 |
$3,238 |
$3,238 |
$3,238 |
$3,238 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$36,340 |
$53,275 |
$70,886 |
$89,205 |
$108,264 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$6,868 |
-$6,110 |
-$5,330 |
-$4,526 |
-$459 |
| Monhtly Cash Flow |
-$572 |
-$509 |
-$444 |
-$377 |
-$38 |
| Cash on Cash Return on Investment |
-0.147% |
-0.131% |
-0.114% |
-0.097% |
-0.010% |
| 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 |