Palmdale Deal Analysis
Let's look at deal analysis for Palmdale, 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 Palmdale, California Rental Property
|
Typical 20% Down Payment Palmdale, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$435,931
|
|
Purchase Price
|
|
$435,931
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$87,186
|
|
Closing Costs
|
1.000%
|
$4,359
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$26,664
|
|
Total Invested
|
|
$118,210
|
|
Mortgage
|
|
Mortgage Amount
|
|
$348,744.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,730
$2730.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$983
|
|
Property Taxes
|
1.342%
|
$5,850
|
|
Property Insurance
|
0.173%
|
$754
|
|
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%
|
$65,390
|
|
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 |
$449,009 |
$462,479 |
$476,354 |
$490,644 |
$505,364 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$13,078 |
$13,470 |
$13,874 |
$14,291 |
$14,719 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,730 |
$2,812 |
$2,896 |
$2,983 |
$3,073 |
| 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 |
$2,730 |
$2,812 |
$2,896 |
$2,983 |
$3,073 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$82 |
$84 |
$87 |
$89 |
$92 |
| Monthly Gross Operating Income |
$2,648 |
$2,728 |
$2,809 |
$2,894 |
$2,980 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$32,760 |
$33,743 |
$34,755 |
$35,798 |
$36,872 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$32,760 |
$33,743 |
$34,755 |
$35,798 |
$36,872 |
| Annual Vacancy Dollar |
$983 |
$1,012 |
$1,043 |
$1,074 |
$1,106 |
| Annual Gross Operating Income |
$31,777 |
$32,731 |
$33,712 |
$34,724 |
$35,766 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.342% |
1.342% |
1.342% |
1.342% |
1.342% |
| Property Taxes Dollar |
$5,850 |
$6,026 |
$6,206 |
$6,393 |
$6,584 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$754 |
$777 |
$800 |
$824 |
$849 |
| 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 |
$3,178 |
$3,273 |
$3,371 |
$3,472 |
$3,577 |
| 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 |
$9,782 |
$10,076 |
$10,378 |
$10,689 |
$11,010 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$21,995 |
$22,655 |
$23,335 |
$24,035 |
$24,756 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$27,843 |
$27,843 |
$27,843 |
$27,843 |
$27,843 |
| Principal |
$3,543 |
$3,799 |
$4,073 |
$4,368 |
$4,684 |
| Interest |
$24,300 |
$24,044 |
$23,769 |
$23,475 |
$23,159 |
| Loan Balance at End of Year |
$345,202 |
$341,403 |
$337,330 |
$332,962 |
$328,279 |
| 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 |
$103,807 |
$121,076 |
$139,023 |
$157,682 |
$177,085 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$5,847 |
-$5,188 |
-$4,508 |
-$3,808 |
-$3,087 |
| Monhtly Cash Flow |
-$487 |
-$432 |
-$376 |
-$317 |
-$257 |
| Cash on Cash Return on Investment |
-0.049% |
-0.044% |
-0.038% |
-0.032% |
-0.026% |
| 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 |