Grand Rapids Deal Analysis

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

Typical Grand Rapids, Michigan Nomad™ Property with 10% Higher Rents
Purchase Inputs
	Percents	Dollars/#
ARV		$224,334
Purchase Price		$224,334
Seller Concessions	—	$0
Down Payment	5.000%	$11,217
Closing Costs	1.000%	$2,243
Rent Ready Costs		$0
Cumulative Negative Cash Flow		$203
Total Invested		$13,663
Mortgage
Mortgage Amount		$213,117.30
Mortgage Interest Rate	6.500%
Loan Term		360
Private Mortgage Insurance	0.850%	$150.96
Drop PMI LTV	80.000%
Income
Monthly Rent		$2,195 $2194.50
Other Income		$0
Annual Expenses
Vacancy Rate	3.000%	$790
Property Taxes	1.458%	$3,271
Property Insurance	0.880%	$1,974
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%	$33,650
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	$231,064	$237,996	$245,136	$252,490	$260,065
Appreciation Rate	3.000%	3.000%	3.000%	3.000%	3.000%
Appreciation Dollar	$6,730	$6,932	$7,140	$7,354	$7,575
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	1.458%	1.458%	1.458%	1.458%	1.458%
Property Taxes Dollar	$3,271	$3,369	$3,470	$3,574	$3,681
Insurance Percent	0.880%	0.880%	0.880%	0.880%	0.880%
Insurance Dollar	$1,974	$2,033	$2,094	$2,157	$2,222
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	$7,799	$8,033	$8,274	$8,523	$8,778
Net Operating Income	1	2	3	4	5
Net Operating Income (NOI)	$17,745	$18,277	$18,825	$19,390	$19,972
Mortgage	1	2	3	4	5
Total Annual P&I Payments	$16,165	$16,165	$16,165	$16,165	$16,165
Principal	$2,382	$2,542	$2,712	$2,893	$3,087
Interest	$13,782	$13,623	$13,453	$13,271	$13,077
Loan Balance at End of Year	$210,735	$208,194	$205,482	$202,588	$199,501
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	$1,811	$1,811	$1,811	$1,811	$0
Equity	1	2	3	4	5
ARV - Loan Balance at End of Year	$20,329	$29,802	$39,654	$49,902	$60,564
Cash Flow	1	2	3	4	5
Annual Cash Flow	-$231	$301	$849	$1,414	$3,807
Monhtly Cash Flow	-$19	$25	$71	$118	$317
Cash on Cash Return on Investment	-0.017%	0.022%	0.062%	0.103%	0.279%
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