Cambridge Deal Analysis
Let's look at deal analysis for Cambridge, MA 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 Cambridge, Massachusetts Rental Property
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Typical 20% Down Payment Cambridge, Massachusetts Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,597,239
|
|
Purchase Price
|
|
$1,597,239
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$319,448
|
|
Closing Costs
|
1.000%
|
$15,972
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$1,475,560
|
|
Total Invested
|
|
$1,810,980
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,277,791.20
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$4,410
$4410.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,588
|
|
Property Taxes
|
0.498%
|
$7,954
|
|
Property Insurance
|
0.314%
|
$5,015
|
|
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%
|
$239,586
|
|
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 |
$1,645,156 |
$1,694,511 |
$1,745,346 |
$1,797,707 |
$1,851,638 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$47,917 |
$49,355 |
$50,835 |
$52,360 |
$53,931 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$4,410 |
$4,542 |
$4,679 |
$4,819 |
$4,963 |
| 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 |
$4,410 |
$4,542 |
$4,679 |
$4,819 |
$4,963 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$132 |
$136 |
$140 |
$145 |
$149 |
| Monthly Gross Operating Income |
$4,278 |
$4,406 |
$4,538 |
$4,674 |
$4,815 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$52,920 |
$54,508 |
$56,143 |
$57,827 |
$59,562 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$52,920 |
$54,508 |
$56,143 |
$57,827 |
$59,562 |
| Annual Vacancy Dollar |
$1,588 |
$1,635 |
$1,684 |
$1,735 |
$1,787 |
| Annual Gross Operating Income |
$51,332 |
$52,872 |
$54,459 |
$56,092 |
$57,775 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.498% |
0.498% |
0.498% |
0.498% |
0.498% |
| Property Taxes Dollar |
$7,954 |
$8,193 |
$8,439 |
$8,692 |
$8,953 |
| Insurance Percent |
0.314% |
0.314% |
0.314% |
0.314% |
0.314% |
| Insurance Dollar |
$5,015 |
$5,166 |
$5,321 |
$5,480 |
$5,645 |
| 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 |
$5,133 |
$5,287 |
$5,446 |
$5,609 |
$5,778 |
| 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 |
$18,103 |
$18,646 |
$19,205 |
$19,781 |
$20,375 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$33,230 |
$34,226 |
$35,253 |
$36,311 |
$37,400 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$102,014 |
$102,014 |
$102,014 |
$102,014 |
$102,014 |
| Principal |
$12,980 |
$13,918 |
$14,924 |
$16,003 |
$17,160 |
| Interest |
$89,034 |
$88,096 |
$87,090 |
$86,011 |
$84,854 |
| Loan Balance at End of Year |
$1,264,811 |
$1,250,893 |
$1,235,968 |
$1,219,965 |
$1,202,805 |
| 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 |
$380,345 |
$443,618 |
$509,378 |
$577,741 |
$648,833 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$68,785 |
-$67,788 |
-$66,761 |
-$65,703 |
-$64,614 |
| Monhtly Cash Flow |
-$5,732 |
-$5,649 |
-$5,563 |
-$5,475 |
-$5,384 |
| Cash on Cash Return on Investment |
-0.038% |
-0.037% |
-0.037% |
-0.036% |
-0.036% |
| 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 |