Modesto Deal Analysis
Let's look at deal analysis for Modesto, 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 Modesto, California Rental Property
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Typical 20% Down Payment Modesto, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$401,022
|
|
Purchase Price
|
|
$401,022
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$80,204
|
|
Closing Costs
|
1.000%
|
$4,010
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$7,692
|
|
Total Invested
|
|
$91,906
|
|
Mortgage
|
|
Mortgage Amount
|
|
$320,817.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,520
$2520.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$907
|
|
Property Taxes
|
0.768%
|
$3,080
|
|
Property Insurance
|
0.173%
|
$694
|
|
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%
|
$60,153
|
|
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 |
$2,520 |
$2,596 |
$2,673 |
$2,754 |
$2,836 |
| 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 |
$2,520 |
$2,596 |
$2,673 |
$2,754 |
$2,836 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$76 |
$78 |
$80 |
$83 |
$85 |
| Monthly Gross Operating Income |
$2,444 |
$2,518 |
$2,593 |
$2,671 |
$2,751 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$30,240 |
$31,147 |
$32,082 |
$33,044 |
$34,035 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$30,240 |
$31,147 |
$32,082 |
$33,044 |
$34,035 |
| Annual Vacancy Dollar |
$907 |
$934 |
$962 |
$991 |
$1,021 |
| Annual Gross Operating Income |
$29,333 |
$30,213 |
$31,119 |
$32,053 |
$33,014 |
| 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 |
$2,933 |
$3,021 |
$3,112 |
$3,205 |
$3,301 |
| 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 |
$6,707 |
$6,908 |
$7,115 |
$7,329 |
$7,549 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$22,626 |
$23,305 |
$24,004 |
$24,724 |
$25,466 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$25,613 |
$25,613 |
$25,613 |
$25,613 |
$25,613 |
| Principal |
$3,259 |
$3,495 |
$3,747 |
$4,018 |
$4,308 |
| Interest |
$22,354 |
$22,118 |
$21,866 |
$21,595 |
$21,304 |
| Loan Balance at End of Year |
$317,559 |
$314,064 |
$310,317 |
$306,299 |
$301,991 |
| 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 |
$95,494 |
$111,380 |
$127,891 |
$145,055 |
$162,904 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$2,987 |
-$2,308 |
-$1,609 |
-$889 |
-$147 |
| Monhtly Cash Flow |
-$249 |
-$192 |
-$134 |
-$74 |
-$12 |
| Cash on Cash Return on Investment |
-0.033% |
-0.025% |
-0.018% |
-0.010% |
-0.002% |
| 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 |