Ann Arbor Deal Analysis
Let's look at deal analysis for Ann Arbor, MI 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 Ann Arbor, Michigan Nomad™ Property with 10% Higher Rents
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Typical Ann Arbor, Michigan 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/#
|
|
ARV
|
|
$450,809
|
|
Purchase Price
|
|
$450,809
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$22,540
|
|
Closing Costs
|
1.000%
|
$4,508
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$53,471
|
|
Total Invested
|
|
$80,519
|
|
Mortgage
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|
Mortgage Amount
|
|
$428,268.55
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|
Mortgage Interest Rate
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6.500%
|
|
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Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$303.36
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
|
|
$3,581
$3580.50
|
|
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%
|
$1,289
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Property Taxes
|
1.927%
|
$8,687
|
|
Property Insurance
|
0.880%
|
$3,967
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
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Maintenance
|
10.000%
|
|
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CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$67,621
|
|
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 |
$464,333 |
$478,263 |
$492,611 |
$507,390 |
$522,611 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$13,524 |
$13,930 |
$14,348 |
$14,778 |
$15,222 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,581 |
$3,688 |
$3,799 |
$3,913 |
$4,030 |
| 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 |
$3,581 |
$3,688 |
$3,799 |
$3,913 |
$4,030 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$107 |
$111 |
$114 |
$117 |
$121 |
| Monthly Gross Operating Income |
$3,473 |
$3,577 |
$3,685 |
$3,795 |
$3,909 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$42,966 |
$44,255 |
$45,583 |
$46,950 |
$48,359 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$42,966 |
$44,255 |
$45,583 |
$46,950 |
$48,359 |
| Annual Vacancy Dollar |
$1,289 |
$1,328 |
$1,367 |
$1,409 |
$1,451 |
| Annual Gross Operating Income |
$41,677 |
$42,927 |
$44,215 |
$45,542 |
$46,908 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.927% |
1.927% |
1.927% |
1.927% |
1.927% |
| Property Taxes Dollar |
$8,687 |
$8,948 |
$9,216 |
$9,493 |
$9,777 |
| Insurance Percent |
0.880% |
0.880% |
0.880% |
0.880% |
0.880% |
| Insurance Dollar |
$3,967 |
$4,086 |
$4,209 |
$4,335 |
$4,465 |
| 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 |
$4,168 |
$4,293 |
$4,422 |
$4,554 |
$4,691 |
| 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 |
$16,822 |
$17,327 |
$17,846 |
$18,382 |
$18,933 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$24,855 |
$25,601 |
$26,369 |
$27,160 |
$27,975 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$32,483 |
$32,483 |
$32,483 |
$32,483 |
$32,483 |
| Principal |
$4,787 |
$5,107 |
$5,450 |
$5,814 |
$6,204 |
| Interest |
$27,697 |
$27,376 |
$27,034 |
$26,669 |
$26,279 |
| Loan Balance at End of Year |
$423,482 |
$418,374 |
$412,925 |
$407,110 |
$400,906 |
| 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 |
$3,640 |
$3,640 |
$3,640 |
$3,640 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$40,852 |
$59,889 |
$79,686 |
$100,279 |
$121,705 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$11,269 |
-$10,523 |
-$9,755 |
-$8,964 |
-$4,509 |
| Monhtly Cash Flow |
-$939 |
-$877 |
-$813 |
-$747 |
-$376 |
| Cash on Cash Return on Investment |
-0.140% |
-0.131% |
-0.121% |
-0.111% |
-0.056% |
| 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 |