Independence Deal Analysis
Let's look at deal analysis for Independence, MO 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 Independence, Missouri Nomad™ Property with 10% Higher Rents
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Typical Independence, Missouri Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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Percents
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Dollars/#
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|
ARV
|
|
$165,230
|
|
Purchase Price
|
|
$165,230
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$8,262
|
|
Closing Costs
|
1.000%
|
$1,652
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$2,320
|
|
Total Invested
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$12,233
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Mortgage
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|
Mortgage Amount
|
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$156,968.50
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Mortgage Interest Rate
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6.500%
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Loan Term
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|
360
|
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Private Mortgage Insurance
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0.850%
|
$111.19
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Drop PMI LTV
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80.000%
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|
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Income
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Monthly Rent
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$1,611
$1611.23
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Other Income
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$0
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Annual Expenses
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Vacancy Rate
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3.000%
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$580
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Property Taxes
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1.372%
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$2,267
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Property Insurance
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1.550%
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$2,561
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|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
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|
Other Expenses 2
|
|
$0
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Maintenance
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10.000%
|
|
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CapEx
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$0
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Management
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0.000%
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|
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Depreciation Details
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Land Value
|
15.000%
|
$24,785
|
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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 |
$170,187 |
$175,293 |
$180,551 |
$185,968 |
$191,547 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$4,957 |
$5,106 |
$5,259 |
$5,417 |
$5,579 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,611 |
$1,660 |
$1,709 |
$1,761 |
$1,813 |
| 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 |
$1,611 |
$1,660 |
$1,709 |
$1,761 |
$1,813 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$48 |
$50 |
$51 |
$53 |
$54 |
| Monthly Gross Operating Income |
$1,563 |
$1,610 |
$1,658 |
$1,708 |
$1,759 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$19,335 |
$19,915 |
$20,512 |
$21,128 |
$21,761 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$19,335 |
$19,915 |
$20,512 |
$21,128 |
$21,761 |
| Annual Vacancy Dollar |
$580 |
$597 |
$615 |
$634 |
$653 |
| Annual Gross Operating Income |
$18,755 |
$19,317 |
$19,897 |
$20,494 |
$21,109 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.372% |
1.372% |
1.372% |
1.372% |
1.372% |
| Property Taxes Dollar |
$2,267 |
$2,335 |
$2,405 |
$2,477 |
$2,551 |
| Insurance Percent |
1.550% |
1.550% |
1.550% |
1.550% |
1.550% |
| Insurance Dollar |
$2,561 |
$2,638 |
$2,717 |
$2,799 |
$2,883 |
| 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 |
$1,875 |
$1,932 |
$1,990 |
$2,049 |
$2,111 |
| 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 |
$6,703 |
$6,905 |
$7,112 |
$7,325 |
$7,545 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$12,051 |
$12,413 |
$12,785 |
$13,169 |
$13,564 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$11,906 |
$11,906 |
$11,906 |
$11,906 |
$11,906 |
| Principal |
$1,755 |
$1,872 |
$1,997 |
$2,131 |
$2,274 |
| Interest |
$10,151 |
$10,034 |
$9,908 |
$9,775 |
$9,632 |
| Loan Balance at End of Year |
$155,214 |
$153,342 |
$151,345 |
$149,213 |
$146,940 |
| 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 |
$1,334 |
$1,334 |
$1,334 |
$1,334 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$14,973 |
$21,951 |
$29,207 |
$36,754 |
$44,607 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$1,189 |
-$827 |
-$455 |
-$71 |
$1,658 |
| Monhtly Cash Flow |
-$99 |
-$69 |
-$38 |
-$6 |
$138 |
| Cash on Cash Return on Investment |
-0.097% |
-0.068% |
-0.037% |
-0.006% |
0.136% |
| 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 |