Ann Arbor Deal Analysis
Let's look at deal analysis for Ann Arbor, MI 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 Ann Arbor, Michigan Rental Property
|
Typical 20% Down Payment Ann Arbor, Michigan Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$450,809
|
|
Purchase Price
|
|
$450,809
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$90,162
|
|
Closing Costs
|
1.000%
|
$4,508
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$41,470
|
|
Total Invested
|
|
$136,140
|
|
Mortgage
|
|
Mortgage Amount
|
|
$360,647.20
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,255
$3255.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,172
|
|
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
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
|
|
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 |
$3,255 |
$3,353 |
$3,453 |
$3,557 |
$3,664 |
| 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 |
$3,255 |
$3,353 |
$3,453 |
$3,557 |
$3,664 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$98 |
$101 |
$104 |
$107 |
$110 |
| Monthly Gross Operating Income |
$3,157 |
$3,252 |
$3,350 |
$3,450 |
$3,554 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$39,060 |
$40,232 |
$41,439 |
$42,682 |
$43,962 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$39,060 |
$40,232 |
$41,439 |
$42,682 |
$43,962 |
| Annual Vacancy Dollar |
$1,172 |
$1,207 |
$1,243 |
$1,280 |
$1,319 |
| Annual Gross Operating Income |
$37,888 |
$39,025 |
$40,196 |
$41,401 |
$42,644 |
| 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 |
$3,789 |
$3,902 |
$4,020 |
$4,140 |
$4,264 |
| 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 |
$16,443 |
$16,936 |
$17,444 |
$17,968 |
$18,507 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$21,445 |
$22,089 |
$22,751 |
$23,434 |
$24,137 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$28,793 |
$28,793 |
$28,793 |
$28,793 |
$28,793 |
| Principal |
$3,663 |
$3,928 |
$4,212 |
$4,517 |
$4,843 |
| Interest |
$25,129 |
$24,864 |
$24,580 |
$24,276 |
$23,949 |
| Loan Balance at End of Year |
$356,984 |
$353,056 |
$348,843 |
$344,327 |
$339,483 |
| 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 |
$107,349 |
$125,208 |
$143,768 |
$163,063 |
$183,128 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$7,348 |
-$6,704 |
-$6,041 |
-$5,359 |
-$4,656 |
| Monhtly Cash Flow |
-$612 |
-$559 |
-$503 |
-$447 |
-$388 |
| Cash on Cash Return on Investment |
-0.054% |
-0.049% |
-0.044% |
-0.039% |
-0.034% |
| 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 |