Sterling Heights Deal Analysis
Let's look at deal analysis for Sterling Heights, 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 Sterling Heights, Michigan Rental Property
|
Typical 20% Down Payment Sterling Heights, Michigan Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$254,735
|
|
Purchase Price
|
|
$254,735
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$50,947
|
|
Closing Costs
|
1.000%
|
$2,547
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$611
|
|
Total Invested
|
|
$54,105
|
|
Mortgage
|
|
Mortgage Amount
|
|
$203,788
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,100
$2100.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$756
|
|
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 |
$2,100 |
$2,163 |
$2,228 |
$2,295 |
$2,364 |
| 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 |
$2,100 |
$2,163 |
$2,228 |
$2,295 |
$2,364 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$63 |
$65 |
$67 |
$69 |
$71 |
| Monthly Gross Operating Income |
$2,037 |
$2,098 |
$2,161 |
$2,226 |
$2,293 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$25,200 |
$25,956 |
$26,735 |
$27,537 |
$28,363 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$25,200 |
$25,956 |
$26,735 |
$27,537 |
$28,363 |
| Annual Vacancy Dollar |
$756 |
$779 |
$802 |
$826 |
$851 |
| Annual Gross Operating Income |
$24,444 |
$25,177 |
$25,933 |
$26,711 |
$27,512 |
| 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 |
$2,444 |
$2,518 |
$2,593 |
$2,671 |
$2,751 |
| 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 |
$8,739 |
$9,001 |
$9,271 |
$9,549 |
$9,836 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,705 |
$16,176 |
$16,662 |
$17,161 |
$17,676 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$16,270 |
$16,270 |
$16,270 |
$16,270 |
$16,270 |
| Principal |
$2,070 |
$2,220 |
$2,380 |
$2,552 |
$2,737 |
| Interest |
$14,200 |
$14,050 |
$13,889 |
$13,717 |
$13,533 |
| Loan Balance at End of Year |
$201,718 |
$199,498 |
$197,118 |
$194,565 |
$191,829 |
| 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 |
$60,659 |
$70,750 |
$81,238 |
$92,141 |
$103,479 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$565 |
-$93 |
$392 |
$892 |
$1,407 |
| Monhtly Cash Flow |
-$47 |
-$8 |
$33 |
$74 |
$117 |
| Cash on Cash Return on Investment |
-0.010% |
-0.002% |
0.007% |
0.016% |
0.026% |
| 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 |