Newport Beach Deal Analysis
Let's look at deal analysis for Newport Beach, 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 Newport Beach, California Nomad™ Property with 10% Higher Rents
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Typical Newport Beach, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$2,347,137
|
|
Purchase Price
|
|
$2,347,137
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$117,357
|
|
Closing Costs
|
1.000%
|
$23,471
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$423,023
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Total Invested
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|
$563,852
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Mortgage
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|
Mortgage Amount
|
|
$2,229,780.15
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|
Mortgage Interest Rate
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6.500%
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|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$1,579.43
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Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
|
|
$12,921
$12920.99
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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%
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$4,652
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Property Taxes
|
0.560%
|
$13,144
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|
Property Insurance
|
0.173%
|
$4,061
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
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|
Other Expenses 2
|
|
$0
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Maintenance
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10.000%
|
|
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CapEx
|
|
$0
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|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$352,071
|
|
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 |
$2,417,551 |
$2,490,078 |
$2,564,780 |
$2,641,723 |
$2,720,975 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$70,414 |
$72,527 |
$74,702 |
$76,943 |
$79,252 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$12,921 |
$13,309 |
$13,708 |
$14,119 |
$14,543 |
| 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 |
$12,921 |
$13,309 |
$13,708 |
$14,119 |
$14,543 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$388 |
$399 |
$411 |
$424 |
$436 |
| Monthly Gross Operating Income |
$12,533 |
$12,909 |
$13,297 |
$13,696 |
$14,106 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$155,052 |
$159,703 |
$164,495 |
$169,429 |
$174,512 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$155,052 |
$159,703 |
$164,495 |
$169,429 |
$174,512 |
| Annual Vacancy Dollar |
$4,652 |
$4,791 |
$4,935 |
$5,083 |
$5,235 |
| Annual Gross Operating Income |
$150,400 |
$154,912 |
$159,560 |
$164,346 |
$169,277 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.560% |
0.560% |
0.560% |
0.560% |
0.560% |
| Property Taxes Dollar |
$13,144 |
$13,538 |
$13,944 |
$14,363 |
$14,794 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$4,061 |
$4,182 |
$4,308 |
$4,437 |
$4,570 |
| 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 |
$15,040 |
$15,491 |
$15,956 |
$16,435 |
$16,928 |
| 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 |
$32,245 |
$33,212 |
$34,208 |
$35,234 |
$36,292 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$118,156 |
$121,700 |
$125,351 |
$129,112 |
$132,985 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$169,125 |
$169,125 |
$169,125 |
$169,125 |
$169,125 |
| Principal |
$24,923 |
$26,592 |
$28,373 |
$30,273 |
$32,301 |
| Interest |
$144,202 |
$142,533 |
$140,752 |
$138,852 |
$136,824 |
| Loan Balance at End of Year |
$2,204,857 |
$2,178,265 |
$2,149,892 |
$2,119,619 |
$2,087,319 |
| 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 |
$18,953 |
$18,953 |
$18,953 |
$18,953 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$212,694 |
$311,812 |
$414,888 |
$522,104 |
$633,656 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$69,922 |
-$66,377 |
-$62,726 |
-$58,966 |
-$36,139 |
| Monhtly Cash Flow |
-$5,827 |
-$5,531 |
-$5,227 |
-$4,914 |
-$3,012 |
| Cash on Cash Return on Investment |
-0.124% |
-0.118% |
-0.111% |
-0.105% |
-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 |