Santa Monica Deal Analysis
Let's look at deal analysis for Santa Monica, 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 Santa Monica, California Rental Property
|
Typical 20% Down Payment Santa Monica, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$2,390,000
|
|
Purchase Price
|
|
$2,390,000
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$478,000
|
|
Closing Costs
|
1.000%
|
$23,900
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$652,240
|
|
Total Invested
|
|
$1,154,140
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,912,000
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$10,495
$10494.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$3,778
|
|
Property Taxes
|
0.691%
|
$16,515
|
|
Property Insurance
|
0.173%
|
$4,135
|
|
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%
|
$358,500
|
|
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 |
$2,461,700 |
$2,535,551 |
$2,611,618 |
$2,689,966 |
$2,770,665 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$71,700 |
$73,851 |
$76,067 |
$78,349 |
$80,699 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$10,495 |
$10,810 |
$11,134 |
$11,468 |
$11,812 |
| 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 |
$10,495 |
$10,810 |
$11,134 |
$11,468 |
$11,812 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$315 |
$324 |
$334 |
$344 |
$354 |
| Monthly Gross Operating Income |
$10,180 |
$10,485 |
$10,800 |
$11,124 |
$11,458 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$125,937 |
$129,715 |
$133,607 |
$137,615 |
$141,743 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$125,937 |
$129,715 |
$133,607 |
$137,615 |
$141,743 |
| Annual Vacancy Dollar |
$3,778 |
$3,891 |
$4,008 |
$4,128 |
$4,252 |
| Annual Gross Operating Income |
$122,159 |
$125,824 |
$129,598 |
$133,486 |
$137,491 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.691% |
0.691% |
0.691% |
0.691% |
0.691% |
| Property Taxes Dollar |
$16,515 |
$17,010 |
$17,521 |
$18,046 |
$18,588 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$4,135 |
$4,259 |
$4,387 |
$4,518 |
$4,654 |
| 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 |
$12,216 |
$12,582 |
$12,960 |
$13,349 |
$13,749 |
| 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 |
$32,865 |
$33,851 |
$34,867 |
$35,913 |
$36,990 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$89,293 |
$91,972 |
$94,731 |
$97,573 |
$100,501 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$152,647 |
$152,647 |
$152,647 |
$152,647 |
$152,647 |
| Principal |
$19,422 |
$20,826 |
$22,332 |
$23,946 |
$25,677 |
| Interest |
$133,225 |
$131,821 |
$130,315 |
$128,701 |
$126,970 |
| Loan Balance at End of Year |
$1,892,578 |
$1,871,751 |
$1,849,420 |
$1,825,474 |
$1,799,796 |
| 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 |
$569,122 |
$663,800 |
$762,198 |
$864,493 |
$970,869 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$63,354 |
-$60,675 |
-$57,916 |
-$55,074 |
-$52,146 |
| Monhtly Cash Flow |
-$5,279 |
-$5,056 |
-$4,826 |
-$4,589 |
-$4,346 |
| Cash on Cash Return on Investment |
-0.055% |
-0.053% |
-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 |