Torrance Deal Analysis
Let's look at deal analysis for Torrance, 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 Torrance, California Nomad™ Property with 10% Higher Rents
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Typical Torrance, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
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Percents
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Dollars/#
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|
ARV
|
|
$1,062,103
|
|
Purchase Price
|
|
$1,062,103
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$53,105
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|
Closing Costs
|
1.000%
|
$10,621
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|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$372,846
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Total Invested
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|
$436,572
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Mortgage
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|
Mortgage Amount
|
|
$1,008,997.85
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|
Mortgage Interest Rate
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6.500%
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|
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Loan Term
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|
360
|
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Private Mortgage Insurance
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0.850%
|
$714.71
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Drop PMI LTV
|
80.000%
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|
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Income
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Monthly Rent
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|
$5,198
$5197.50
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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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$1,871
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Property Taxes
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0.785%
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$8,338
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Property Insurance
|
0.173%
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$1,837
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|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
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|
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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|
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CapEx
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|
$0
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Management
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0.000%
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|
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Depreciation Details
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|
Land Value
|
15.000%
|
$159,315
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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 |
$1,093,966 |
$1,126,785 |
$1,160,589 |
$1,195,406 |
$1,231,268 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$31,863 |
$32,819 |
$33,804 |
$34,818 |
$35,862 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$5,198 |
$5,353 |
$5,514 |
$5,679 |
$5,850 |
| 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 |
$5,198 |
$5,353 |
$5,514 |
$5,679 |
$5,850 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$156 |
$161 |
$165 |
$170 |
$175 |
| Monthly Gross Operating Income |
$5,042 |
$5,193 |
$5,349 |
$5,509 |
$5,674 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$62,370 |
$64,241 |
$66,168 |
$68,153 |
$70,198 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$62,370 |
$64,241 |
$66,168 |
$68,153 |
$70,198 |
| Annual Vacancy Dollar |
$1,871 |
$1,927 |
$1,985 |
$2,045 |
$2,106 |
| Annual Gross Operating Income |
$60,499 |
$62,314 |
$64,183 |
$66,109 |
$68,092 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.785% |
0.785% |
0.785% |
0.785% |
0.785% |
| Property Taxes Dollar |
$8,338 |
$8,588 |
$8,845 |
$9,111 |
$9,384 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,837 |
$1,893 |
$1,949 |
$2,008 |
$2,068 |
| 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 |
$6,050 |
$6,231 |
$6,418 |
$6,611 |
$6,809 |
| 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 |
$16,225 |
$16,712 |
$17,213 |
$17,729 |
$18,261 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$44,274 |
$45,602 |
$46,970 |
$48,379 |
$49,831 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$76,531 |
$76,531 |
$76,531 |
$76,531 |
$76,531 |
| Principal |
$11,278 |
$12,033 |
$12,839 |
$13,699 |
$14,616 |
| Interest |
$65,253 |
$64,498 |
$63,692 |
$62,832 |
$61,914 |
| Loan Balance at End of Year |
$997,720 |
$985,687 |
$972,848 |
$959,149 |
$944,533 |
| 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 |
$8,576 |
$8,576 |
$8,576 |
$8,576 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$96,246 |
$141,098 |
$187,741 |
$236,257 |
$286,736 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$40,833 |
-$39,505 |
-$38,137 |
-$36,728 |
-$26,700 |
| Monhtly Cash Flow |
-$3,403 |
-$3,292 |
-$3,178 |
-$3,061 |
-$2,225 |
| Cash on Cash Return on Investment |
-0.094% |
-0.090% |
-0.087% |
-0.084% |
-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 |