Worcester Deal Analysis
Let's look at deal analysis for Worcester, MA 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 Worcester, Massachusetts Nomad™ Property with 10% Higher Rents
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Typical Worcester, Massachusetts Nomad™ Property with 10% Higher Rents
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|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$339,450
|
|
Purchase Price
|
|
$339,450
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$16,973
|
|
Closing Costs
|
1.000%
|
$3,395
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$73,729
|
|
Total Invested
|
|
$94,096
|
|
Mortgage
|
|
Mortgage Amount
|
|
$322,477.50
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$228.42
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,195
$2194.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$790
|
|
Property Taxes
|
1.653%
|
$5,611
|
|
Property Insurance
|
0.314%
|
$1,066
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$50,918
|
|
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 |
$349,634 |
$360,123 |
$370,926 |
$382,054 |
$393,516 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$10,184 |
$10,489 |
$10,804 |
$11,128 |
$11,462 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,195 |
$2,260 |
$2,328 |
$2,398 |
$2,470 |
| 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 |
$2,195 |
$2,260 |
$2,328 |
$2,398 |
$2,470 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$66 |
$68 |
$70 |
$72 |
$74 |
| Monthly Gross Operating Income |
$2,129 |
$2,193 |
$2,258 |
$2,326 |
$2,396 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$26,334 |
$27,124 |
$27,938 |
$28,776 |
$29,639 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$26,334 |
$27,124 |
$27,938 |
$28,776 |
$29,639 |
| Annual Vacancy Dollar |
$790 |
$814 |
$838 |
$863 |
$889 |
| Annual Gross Operating Income |
$25,544 |
$26,310 |
$27,100 |
$27,913 |
$28,750 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.653% |
1.653% |
1.653% |
1.653% |
1.653% |
| Property Taxes Dollar |
$5,611 |
$5,779 |
$5,953 |
$6,131 |
$6,315 |
| Insurance Percent |
0.314% |
0.314% |
0.314% |
0.314% |
0.314% |
| Insurance Dollar |
$1,066 |
$1,098 |
$1,131 |
$1,165 |
$1,200 |
| 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 |
$2,554 |
$2,631 |
$2,710 |
$2,791 |
$2,875 |
| 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 |
$9,231 |
$9,508 |
$9,794 |
$10,087 |
$10,390 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$16,313 |
$16,802 |
$17,306 |
$17,825 |
$18,360 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$24,459 |
$24,459 |
$24,459 |
$24,459 |
$24,459 |
| Principal |
$3,604 |
$3,846 |
$4,103 |
$4,378 |
$4,671 |
| Interest |
$20,855 |
$20,614 |
$20,356 |
$20,081 |
$19,788 |
| Loan Balance at End of Year |
$318,873 |
$315,027 |
$310,924 |
$306,546 |
$301,874 |
| 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 |
$2,741 |
$2,741 |
$2,741 |
$2,741 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$30,760 |
$45,095 |
$60,002 |
$75,508 |
$91,641 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$10,888 |
-$10,398 |
-$9,894 |
-$9,375 |
-$6,099 |
| Monhtly Cash Flow |
-$907 |
-$867 |
-$825 |
-$781 |
-$508 |
| Cash on Cash Return on Investment |
-0.116% |
-0.111% |
-0.105% |
-0.100% |
-0.065% |
| 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 |