Lawrence Deal Analysis
Let's look at deal analysis for Lawrence, KS 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 Lawrence, Kansas Nomad™ Property with 10% Higher Rents
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Typical Lawrence, Kansas Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$251,608
|
|
Purchase Price
|
|
$251,608
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$12,580
|
|
Closing Costs
|
1.000%
|
$2,516
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$17,040
|
|
Total Invested
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$32,137
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|
Mortgage
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|
Mortgage Amount
|
|
$239,027.60
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|
Mortgage Interest Rate
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6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$169.31
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
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|
$2,310
$2310.00
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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%
|
$832
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Property Taxes
|
1.381%
|
$3,475
|
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Property Insurance
|
2.127%
|
$5,352
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
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Maintenance
|
10.000%
|
|
|
CapEx
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|
$0
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Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$37,741
|
|
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 |
$259,156 |
$266,931 |
$274,939 |
$283,187 |
$291,683 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,548 |
$7,775 |
$8,008 |
$8,248 |
$8,496 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| 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 |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$69 |
$71 |
$74 |
$76 |
$78 |
| Monthly Gross Operating Income |
$2,241 |
$2,308 |
$2,377 |
$2,448 |
$2,522 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Vacancy Dollar |
$832 |
$857 |
$882 |
$909 |
$936 |
| Annual Gross Operating Income |
$26,888 |
$27,695 |
$28,526 |
$29,382 |
$30,263 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.381% |
1.381% |
1.381% |
1.381% |
1.381% |
| Property Taxes Dollar |
$3,475 |
$3,579 |
$3,686 |
$3,797 |
$3,911 |
| Insurance Percent |
2.127% |
2.127% |
2.127% |
2.127% |
2.127% |
| Insurance Dollar |
$5,352 |
$5,512 |
$5,678 |
$5,848 |
$6,023 |
| 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 |
$2,689 |
$2,770 |
$2,853 |
$2,938 |
$3,026 |
| 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 |
$11,515 |
$11,861 |
$12,217 |
$12,583 |
$12,961 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,373 |
$15,834 |
$16,309 |
$16,799 |
$17,303 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$18,130 |
$18,130 |
$18,130 |
$18,130 |
$18,130 |
| Principal |
$2,672 |
$2,851 |
$3,042 |
$3,245 |
$3,463 |
| Interest |
$15,458 |
$15,279 |
$15,088 |
$14,885 |
$14,667 |
| Loan Balance at End of Year |
$236,356 |
$233,505 |
$230,464 |
$227,218 |
$223,756 |
| 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 |
$2,032 |
$2,032 |
$2,032 |
$2,032 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$22,800 |
$33,426 |
$44,475 |
$55,969 |
$67,927 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$4,788 |
-$4,327 |
-$3,852 |
-$3,363 |
-$827 |
| Monhtly Cash Flow |
-$399 |
-$361 |
-$321 |
-$280 |
-$69 |
| Cash on Cash Return on Investment |
-0.149% |
-0.135% |
-0.120% |
-0.105% |
-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 |