Minneapolis Deal Analysis
Let's look at deal analysis for Minneapolis, MN 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 Minneapolis, Minnesota Rental Property
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Typical 20% Down Payment Minneapolis, Minnesota Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$313,463
|
|
Purchase Price
|
|
$313,463
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$62,693
|
|
Closing Costs
|
1.000%
|
$3,135
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$26,866
|
|
Total Invested
|
|
$92,693
|
|
Mortgage
|
|
Mortgage Amount
|
|
$250,770.40
|
|
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
|
1.331%
|
$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
|
|
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 |
$2,100 |
$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 |
1.331% |
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 |
$2,444 |
$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 |
$9,359 |
$9,640 |
$9,929 |
$10,227 |
$10,534 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,085 |
$15,537 |
$16,003 |
$16,483 |
$16,978 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$20,021 |
$20,021 |
$20,021 |
$20,021 |
$20,021 |
| Principal |
$2,547 |
$2,731 |
$2,929 |
$3,141 |
$3,368 |
| Interest |
$17,473 |
$17,289 |
$17,092 |
$16,880 |
$16,653 |
| Loan Balance at End of Year |
$248,223 |
$245,492 |
$242,563 |
$239,422 |
$236,054 |
| 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 |
$74,644 |
$87,061 |
$99,967 |
$113,383 |
$127,335 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$4,936 |
-$4,483 |
-$4,017 |
-$3,537 |
-$3,043 |
| Monhtly Cash Flow |
-$411 |
-$374 |
-$335 |
-$295 |
-$254 |
| Cash on Cash Return on Investment |
-0.053% |
-0.048% |
-0.043% |
-0.038% |
-0.033% |
| 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 |