Livonia Deal Analysis
Let's look at deal analysis for Livonia, 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 Livonia, Michigan Rental Property
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Typical 20% Down Payment Livonia, Michigan Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$253,753
|
|
Purchase Price
|
|
$253,753
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$50,751
|
|
Closing Costs
|
1.000%
|
$2,538
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$11,634
|
|
Total Invested
|
|
$64,922
|
|
Mortgage
|
|
Mortgage Amount
|
|
$203,002.40
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$1,890
$1890.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$680
|
|
Property Taxes
|
1.699%
|
$4,311
|
|
Property Insurance
|
0.880%
|
$2,233
|
|
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%
|
$38,063
|
|
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 |
$261,366 |
$269,207 |
$277,283 |
$285,601 |
$294,169 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,613 |
$7,841 |
$8,076 |
$8,318 |
$8,568 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,890 |
$1,947 |
$2,005 |
$2,065 |
$2,127 |
| 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 |
$1,890 |
$1,947 |
$2,005 |
$2,065 |
$2,127 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$57 |
$58 |
$60 |
$62 |
$64 |
| Monthly Gross Operating Income |
$1,833 |
$1,888 |
$1,945 |
$2,003 |
$2,063 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$22,680 |
$23,360 |
$24,061 |
$24,783 |
$25,527 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$22,680 |
$23,360 |
$24,061 |
$24,783 |
$25,527 |
| Annual Vacancy Dollar |
$680 |
$701 |
$722 |
$743 |
$766 |
| Annual Gross Operating Income |
$22,000 |
$22,660 |
$23,339 |
$24,040 |
$24,761 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.699% |
1.699% |
1.699% |
1.699% |
1.699% |
| Property Taxes Dollar |
$4,311 |
$4,441 |
$4,574 |
$4,711 |
$4,852 |
| Insurance Percent |
0.880% |
0.880% |
0.880% |
0.880% |
0.880% |
| Insurance Dollar |
$2,233 |
$2,300 |
$2,369 |
$2,440 |
$2,513 |
| 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 |
$2,200 |
$2,266 |
$2,334 |
$2,404 |
$2,476 |
| 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 |
$8,744 |
$9,007 |
$9,277 |
$9,555 |
$9,842 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$13,255 |
$13,653 |
$14,063 |
$14,484 |
$14,919 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$16,207 |
$16,207 |
$16,207 |
$16,207 |
$16,207 |
| Principal |
$2,062 |
$2,211 |
$2,371 |
$2,542 |
$2,726 |
| Interest |
$14,145 |
$13,996 |
$13,836 |
$13,665 |
$13,481 |
| Loan Balance at End of Year |
$200,940 |
$198,729 |
$196,358 |
$193,816 |
$191,089 |
| 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 |
$60,425 |
$70,477 |
$80,925 |
$91,786 |
$103,080 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$2,952 |
-$2,554 |
-$2,144 |
-$1,722 |
-$1,288 |
| Monhtly Cash Flow |
-$246 |
-$213 |
-$179 |
-$144 |
-$107 |
| Cash on Cash Return on Investment |
-0.045% |
-0.039% |
-0.033% |
-0.027% |
-0.020% |
| 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 |