Lexington Deal Analysis

Let's look at deal analysis for Lexington, KY 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 Lexington, Kentucky Nomad™ Property with 10% Higher Rents

Typical Lexington, Kentucky Nomad™ Property with 10% Higher Rents
Purchase Inputs
	Percents	Dollars/#
ARV		$248,059
Purchase Price		$248,059
Seller Concessions	—	$0
Down Payment	5.000%	$12,403
Closing Costs	1.000%	$2,481
Rent Ready Costs		$0
Cumulative Negative Cash Flow		$1,013
Total Invested		$15,897
Mortgage
Mortgage Amount		$235,656.05
Mortgage Interest Rate	6.500%
Loan Term		360
Private Mortgage Insurance	0.850%	$166.92
Drop PMI LTV	80.000%
Income
Monthly Rent		$2,308 $2307.69
Other Income		$0
Annual Expenses
Vacancy Rate	3.000%	$831
Property Taxes	1.006%	$2,495
Property Insurance	1.069%	$2,652
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%	$37,209
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	$255,501	$263,166	$271,061	$279,193	$287,568
Appreciation Rate	3.000%	3.000%	3.000%	3.000%	3.000%
Appreciation Dollar	$7,442	$7,665	$7,895	$8,132	$8,376
Monthly Income	1	2	3	4	5
Rent Appreciation Rate		3.000%	3.000%	3.000%	3.000%
Monthly Rent	$2,308	$2,377	$2,448	$2,522	$2,597
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	$2,308	$2,377	$2,448	$2,522	$2,597
Vacancy Percent	3.000%	3.000%	3.000%	3.000%	3.000%
Monthly Vacancy Dollar	$69	$71	$73	$76	$78
Monthly Gross Operating Income	$2,238	$2,306	$2,375	$2,446	$2,519
Annual Income	1	2	3	4	5
Annual Rent	$27,692	$28,523	$29,379	$30,260	$31,168
Annual Other Income	$0	$0	$0	$0	$0
Annual Gross Potential Income	$27,692	$28,523	$29,379	$30,260	$31,168
Annual Vacancy Dollar	$831	$856	$881	$908	$935
Annual Gross Operating Income	$26,862	$27,667	$28,497	$29,352	$30,233
Annual Expenses	1	2	3	4	5
Property Taxes Percent	1.006%	1.006%	1.006%	1.006%	1.006%
Property Taxes Dollar	$2,495	$2,570	$2,647	$2,727	$2,809
Insurance Percent	1.069%	1.069%	1.069%	1.069%	1.069%
Insurance Dollar	$2,652	$2,731	$2,813	$2,898	$2,985
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	$2,686	$2,767	$2,850	$2,935	$3,023
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	$7,833	$8,068	$8,310	$8,560	$8,817
Net Operating Income	1	2	3	4	5
Net Operating Income (NOI)	$19,028	$19,599	$20,187	$20,793	$21,416
Mortgage	1	2	3	4	5
Total Annual P&I Payments	$17,874	$17,874	$17,874	$17,874	$17,874
Principal	$2,634	$2,810	$2,999	$3,199	$3,414
Interest	$15,240	$15,064	$14,875	$14,675	$14,460
Loan Balance at End of Year	$233,022	$230,212	$227,213	$224,013	$220,600
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	$2,003	$2,003	$2,003	$2,003	$0
Equity	1	2	3	4	5
ARV - Loan Balance at End of Year	$22,479	$32,954	$43,848	$55,179	$66,969
Cash Flow	1	2	3	4	5
Annual Cash Flow	-$849	-$278	$310	$915	$3,542
Monhtly Cash Flow	-$71	-$23	$26	$76	$295
Cash on Cash Return on Investment	-0.053%	-0.018%	0.019%	0.058%	0.223%
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