Detroit Deal Analysis

Let's look at deal analysis for Detroit, 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 Detroit, Michigan Nomad™ Property with 10% Higher Rents

Typical Detroit, Michigan Nomad™ Property with 10% Higher Rents
Purchase Inputs
	Percents	Dollars/#
ARV		$57,353
Purchase Price		$57,353
Seller Concessions	—	$0
Down Payment	5.000%	$2,868
Closing Costs	1.000%	$574
Rent Ready Costs		$0
Cumulative Negative Cash Flow		$0
Total Invested		$3,441
Mortgage
Mortgage Amount		$54,485.35
Mortgage Interest Rate	6.500%
Loan Term		360
Private Mortgage Insurance	0.850%	$38.59
Drop PMI LTV	80.000%
Income
Monthly Rent		$3,119 $3118.50
Other Income		$0
Annual Expenses
Vacancy Rate	3.000%	$1,123
Property Taxes	3.659%	$2,099
Property Insurance	0.880%	$505
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%	$8,603
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	$59,074	$60,846	$62,671	$64,551	$66,488
Appreciation Rate	3.000%	3.000%	3.000%	3.000%	3.000%
Appreciation Dollar	$1,721	$1,772	$1,825	$1,880	$1,937
Monthly Income	1	2	3	4	5
Rent Appreciation Rate		3.000%	3.000%	3.000%	3.000%
Monthly Rent	$3,119	$3,212	$3,308	$3,408	$3,510
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	$3,119	$3,212	$3,308	$3,408	$3,510
Vacancy Percent	3.000%	3.000%	3.000%	3.000%	3.000%
Monthly Vacancy Dollar	$94	$96	$99	$102	$105
Monthly Gross Operating Income	$3,025	$3,116	$3,209	$3,305	$3,405
Annual Income	1	2	3	4	5
Annual Rent	$37,422	$38,545	$39,701	$40,892	$42,119
Annual Other Income	$0	$0	$0	$0	$0
Annual Gross Potential Income	$37,422	$38,545	$39,701	$40,892	$42,119
Annual Vacancy Dollar	$1,123	$1,156	$1,191	$1,227	$1,264
Annual Gross Operating Income	$36,299	$37,388	$38,510	$39,665	$40,855
Annual Expenses	1	2	3	4	5
Property Taxes Percent	3.659%	3.659%	3.659%	3.659%	3.659%
Property Taxes Dollar	$2,099	$2,162	$2,226	$2,293	$2,362
Insurance Percent	0.880%	0.880%	0.880%	0.880%	0.880%
Insurance Dollar	$505	$520	$535	$552	$568
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	$3,630	$3,739	$3,851	$3,967	$4,086
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	$6,233	$6,420	$6,613	$6,811	$7,016
Net Operating Income	1	2	3	4	5
Net Operating Income (NOI)	$30,066	$30,968	$31,897	$32,854	$33,840
Mortgage	1	2	3	4	5
Total Annual P&I Payments	$4,133	$4,133	$4,133	$4,133	$4,133
Principal	$609	$650	$693	$740	$789
Interest	$3,524	$3,483	$3,439	$3,393	$3,343
Loan Balance at End of Year	$53,876	$53,227	$52,533	$51,794	$51,005
Loan-To-Value	91.202%	87.478%	83.824%	80.237%	76.713%
Private Mortgage Insurance (PMI) Rate	0.850%	0.850%	0.850%	0.850%
Private Mortgage Insurance Dollar	$463	$463	$463	$463	$0
Equity	1	2	3	4	5
ARV - Loan Balance at End of Year	$5,197	$7,619	$10,138	$12,758	$15,483
Cash Flow	1	2	3	4	5
Annual Cash Flow	$25,470	$26,372	$27,301	$28,258	$29,707
Monhtly Cash Flow	$2,123	$2,198	$2,275	$2,355	$2,476
Cash on Cash Return on Investment	7.402%	7.664%	7.934%	8.212%	8.633%
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