San Jose Deal Analysis
Let's look at deal analysis for San Jose, 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 San Jose, California Nomad™ Property with 10% Higher Rents
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Typical San Jose, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$1,046,156
|
|
Purchase Price
|
|
$1,046,156
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$52,308
|
|
Closing Costs
|
1.000%
|
$10,462
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$377,539
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|
Total Invested
|
|
$440,309
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Mortgage
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|
Mortgage Amount
|
|
$993,848.20
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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%
|
$703.98
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|
Drop PMI LTV
|
80.000%
|
|
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Income
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|
Monthly Rent
|
|
$5,172
$5172.09
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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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$1,862
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Property Taxes
|
0.877%
|
$9,175
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|
Property Insurance
|
0.173%
|
$1,810
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
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|
Maintenance
|
10.000%
|
|
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CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$156,923
|
|
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 |
$1,077,541 |
$1,109,867 |
$1,143,163 |
$1,177,458 |
$1,212,782 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$31,385 |
$32,326 |
$33,296 |
$34,295 |
$35,324 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$5,172 |
$5,327 |
$5,487 |
$5,652 |
$5,821 |
| 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 |
$5,172 |
$5,327 |
$5,487 |
$5,652 |
$5,821 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$155 |
$160 |
$165 |
$170 |
$175 |
| Monthly Gross Operating Income |
$5,017 |
$5,167 |
$5,322 |
$5,482 |
$5,647 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$62,065 |
$63,927 |
$65,845 |
$67,820 |
$69,855 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$62,065 |
$63,927 |
$65,845 |
$67,820 |
$69,855 |
| Annual Vacancy Dollar |
$1,862 |
$1,918 |
$1,975 |
$2,035 |
$2,096 |
| Annual Gross Operating Income |
$60,203 |
$62,009 |
$63,869 |
$65,786 |
$67,759 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.877% |
0.877% |
0.877% |
0.877% |
0.877% |
| Property Taxes Dollar |
$9,175 |
$9,450 |
$9,734 |
$10,026 |
$10,326 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,810 |
$1,864 |
$1,920 |
$1,978 |
$2,037 |
| 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 |
$6,020 |
$6,201 |
$6,387 |
$6,579 |
$6,776 |
| 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 |
$17,005 |
$17,515 |
$18,041 |
$18,582 |
$19,139 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$43,198 |
$44,494 |
$45,829 |
$47,204 |
$48,620 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$75,382 |
$75,382 |
$75,382 |
$75,382 |
$75,382 |
| Principal |
$11,109 |
$11,852 |
$12,646 |
$13,493 |
$14,397 |
| Interest |
$64,273 |
$63,529 |
$62,735 |
$61,888 |
$60,985 |
| Loan Balance at End of Year |
$982,740 |
$970,887 |
$958,241 |
$944,748 |
$930,351 |
| 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 |
$8,448 |
$8,448 |
$8,448 |
$8,448 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$94,801 |
$138,980 |
$184,922 |
$232,710 |
$282,431 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$40,631 |
-$39,335 |
-$38,000 |
-$36,625 |
-$26,762 |
| Monhtly Cash Flow |
-$3,386 |
-$3,278 |
-$3,167 |
-$3,052 |
-$2,230 |
| Cash on Cash Return on Investment |
-0.092% |
-0.089% |
-0.086% |
-0.083% |
-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 |