Sterling Heights Deal Analysis
Let's look at deal analysis for Sterling Heights, 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 Sterling Heights, Michigan Nomad™ Property with 10% Higher Rents
|
Typical Sterling Heights, Michigan Nomad™ Property with 10% Higher Rents
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$254,735
|
|
Purchase Price
|
|
$254,735
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$12,737
|
|
Closing Costs
|
1.000%
|
$2,547
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$6,354
|
|
Total Invested
|
|
$21,638
|
|
Mortgage
|
|
Mortgage Amount
|
|
$241,998.25
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$171.42
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,310
$2310.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$832
|
|
Property Taxes
|
1.591%
|
$4,053
|
|
Property Insurance
|
0.880%
|
$2,242
|
|
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%
|
$38,210
|
|
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 |
$262,377 |
$270,248 |
$278,356 |
$286,706 |
$295,308 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,642 |
$7,871 |
$8,107 |
$8,351 |
$8,601 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| 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 |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$69 |
$71 |
$74 |
$76 |
$78 |
| Monthly Gross Operating Income |
$2,241 |
$2,308 |
$2,377 |
$2,448 |
$2,522 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Vacancy Dollar |
$832 |
$857 |
$882 |
$909 |
$936 |
| Annual Gross Operating Income |
$26,888 |
$27,695 |
$28,526 |
$29,382 |
$30,263 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.591% |
1.591% |
1.591% |
1.591% |
1.591% |
| Property Taxes Dollar |
$4,053 |
$4,174 |
$4,300 |
$4,429 |
$4,562 |
| Insurance Percent |
0.880% |
0.880% |
0.880% |
0.880% |
0.880% |
| Insurance Dollar |
$2,242 |
$2,309 |
$2,378 |
$2,450 |
$2,523 |
| 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 |
$2,689 |
$2,770 |
$2,853 |
$2,938 |
$3,026 |
| 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 |
$8,983 |
$9,253 |
$9,530 |
$9,816 |
$10,111 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$17,905 |
$18,442 |
$18,995 |
$19,565 |
$20,152 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$18,355 |
$18,355 |
$18,355 |
$18,355 |
$18,355 |
| Principal |
$2,705 |
$2,886 |
$3,079 |
$3,285 |
$3,506 |
| Interest |
$15,650 |
$15,469 |
$15,276 |
$15,070 |
$14,850 |
| Loan Balance at End of Year |
$239,293 |
$236,407 |
$233,328 |
$230,043 |
$226,537 |
| 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 |
$2,057 |
$2,057 |
$2,057 |
$2,057 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$23,084 |
$33,841 |
$45,028 |
$56,664 |
$68,771 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$2,507 |
-$1,970 |
-$1,417 |
-$847 |
$1,797 |
| Monhtly Cash Flow |
-$209 |
-$164 |
-$118 |
-$71 |
$150 |
| Cash on Cash Return on Investment |
-0.116% |
-0.091% |
-0.065% |
-0.039% |
0.083% |
| 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 |