Minneapolis Deal Analysis
Let's look at deal analysis for Minneapolis, MN 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 Minneapolis, Minnesota Nomad™ Property with 10% Higher Rents
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Typical Minneapolis, Minnesota Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$313,463
|
|
Purchase Price
|
|
$313,463
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$15,673
|
|
Closing Costs
|
1.000%
|
$3,135
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$37,157
|
|
Total Invested
|
|
$55,965
|
|
Mortgage
|
|
Mortgage Amount
|
|
$297,789.85
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$210.93
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,310
$2310.00
|
|
Other Income
|
|
$0
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|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$832
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Property Taxes
|
1.331%
|
$4,172
|
|
Property Insurance
|
0.875%
|
$2,743
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$47,019
|
|
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 |
$322,867 |
$332,553 |
$342,529 |
$352,805 |
$363,390 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$9,404 |
$9,686 |
$9,977 |
$10,276 |
$10,584 |
| 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 |
1.331% |
1.331% |
1.331% |
1.331% |
1.331% |
| Property Taxes Dollar |
$4,172 |
$4,297 |
$4,426 |
$4,559 |
$4,696 |
| Insurance Percent |
0.875% |
0.875% |
0.875% |
0.875% |
0.875% |
| Insurance Dollar |
$2,743 |
$2,825 |
$2,910 |
$2,997 |
$3,087 |
| 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 |
$9,604 |
$9,892 |
$10,189 |
$10,494 |
$10,809 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$17,285 |
$17,803 |
$18,337 |
$18,887 |
$19,454 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$22,587 |
$22,587 |
$22,587 |
$22,587 |
$22,587 |
| Principal |
$3,328 |
$3,551 |
$3,789 |
$4,043 |
$4,314 |
| Interest |
$19,258 |
$19,035 |
$18,798 |
$18,544 |
$18,273 |
| Loan Balance at End of Year |
$294,461 |
$290,910 |
$287,121 |
$283,078 |
$278,764 |
| 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 |
$2,531 |
$2,531 |
$2,531 |
$2,531 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$28,405 |
$41,643 |
$55,409 |
$69,727 |
$84,625 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$7,833 |
-$7,315 |
-$6,781 |
-$6,231 |
-$3,133 |
| Monhtly Cash Flow |
-$653 |
-$610 |
-$565 |
-$519 |
-$261 |
| Cash on Cash Return on Investment |
-0.140% |
-0.131% |
-0.121% |
-0.111% |
-0.056% |
| 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 |