San Jose Deal Analysis
Let's look at deal analysis for San Jose, 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 San Jose, California Rental Property
|
Typical 20% Down Payment San Jose, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,046,156
|
|
Purchase Price
|
|
$1,046,156
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$209,231
|
|
Closing Costs
|
1.000%
|
$10,462
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$305,857
|
|
Total Invested
|
|
$525,550
|
|
Mortgage
|
|
Mortgage Amount
|
|
$836,924.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$4,702
$4701.90
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,693
|
|
Property Taxes
|
0.877%
|
$9,175
|
|
Property Insurance
|
0.173%
|
$1,810
|
|
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%
|
$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 |
$4,702 |
$4,843 |
$4,988 |
$5,138 |
$5,292 |
| 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 |
$4,702 |
$4,843 |
$4,988 |
$5,138 |
$5,292 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$141 |
$145 |
$150 |
$154 |
$159 |
| Monthly Gross Operating Income |
$4,561 |
$4,698 |
$4,839 |
$4,984 |
$5,133 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$56,423 |
$58,115 |
$59,859 |
$61,655 |
$63,504 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$56,423 |
$58,115 |
$59,859 |
$61,655 |
$63,504 |
| Annual Vacancy Dollar |
$1,693 |
$1,743 |
$1,796 |
$1,850 |
$1,905 |
| Annual Gross Operating Income |
$54,730 |
$56,372 |
$58,063 |
$59,805 |
$61,599 |
| 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 |
$5,473 |
$5,637 |
$5,806 |
$5,981 |
$6,160 |
| 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 |
$16,458 |
$16,951 |
$17,460 |
$17,984 |
$18,523 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$38,272 |
$39,421 |
$40,603 |
$41,821 |
$43,076 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$66,817 |
$66,817 |
$66,817 |
$66,817 |
$66,817 |
| Principal |
$8,502 |
$9,116 |
$9,775 |
$10,482 |
$11,240 |
| Interest |
$58,315 |
$57,701 |
$57,042 |
$56,335 |
$55,577 |
| Loan Balance at End of Year |
$828,423 |
$819,307 |
$809,532 |
$799,050 |
$787,811 |
| 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 |
$249,117 |
$290,560 |
$333,631 |
$378,408 |
$424,971 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$28,544 |
-$27,396 |
-$26,214 |
-$24,996 |
-$23,741 |
| Monhtly Cash Flow |
-$2,379 |
-$2,283 |
-$2,184 |
-$2,083 |
-$1,978 |
| Cash on Cash Return on Investment |
-0.054% |
-0.052% |
-0.050% |
-0.048% |
-0.045% |
| 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 |