Fargo Deal Analysis
Let's look at deal analysis for Fargo, ND 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 Fargo, North Dakota Nomad™ Property with 10% Higher Rents
|
Typical Fargo, North Dakota Nomad™ Property with 10% Higher Rents
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$251,829
|
|
Purchase Price
|
|
$251,829
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$12,591
|
|
Closing Costs
|
1.000%
|
$2,518
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$48,032
|
|
Total Invested
|
|
$63,142
|
|
Mortgage
|
|
Mortgage Amount
|
|
$239,237.55
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$169.46
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$1,790
$1790.25
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$644
|
|
Property Taxes
|
1.360%
|
$3,425
|
|
Property Insurance
|
1.121%
|
$2,823
|
|
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%
|
$37,774
|
|
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 |
$259,384 |
$267,165 |
$275,180 |
$283,436 |
$291,939 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,555 |
$7,782 |
$8,015 |
$8,255 |
$8,503 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,790 |
$1,844 |
$1,899 |
$1,956 |
$2,015 |
| 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 |
$1,790 |
$1,844 |
$1,899 |
$1,956 |
$2,015 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$54 |
$55 |
$57 |
$59 |
$60 |
| Monthly Gross Operating Income |
$1,737 |
$1,789 |
$1,842 |
$1,898 |
$1,954 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$21,483 |
$22,127 |
$22,791 |
$23,475 |
$24,179 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$21,483 |
$22,127 |
$22,791 |
$23,475 |
$24,179 |
| Annual Vacancy Dollar |
$644 |
$664 |
$684 |
$704 |
$725 |
| Annual Gross Operating Income |
$20,839 |
$21,464 |
$22,108 |
$22,771 |
$23,454 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.360% |
1.360% |
1.360% |
1.360% |
1.360% |
| Property Taxes Dollar |
$3,425 |
$3,528 |
$3,633 |
$3,742 |
$3,855 |
| Insurance Percent |
1.121% |
1.121% |
1.121% |
1.121% |
1.121% |
| Insurance Dollar |
$2,823 |
$2,908 |
$2,995 |
$3,085 |
$3,177 |
| 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 |
$2,084 |
$2,146 |
$2,211 |
$2,277 |
$2,345 |
| 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 |
$8,332 |
$8,582 |
$8,839 |
$9,104 |
$9,377 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$12,507 |
$12,882 |
$13,268 |
$13,666 |
$14,076 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$18,146 |
$18,146 |
$18,146 |
$18,146 |
$18,146 |
| Principal |
$2,674 |
$2,853 |
$3,044 |
$3,248 |
$3,466 |
| Interest |
$15,472 |
$15,293 |
$15,102 |
$14,898 |
$14,680 |
| Loan Balance at End of Year |
$236,564 |
$233,711 |
$230,666 |
$227,418 |
$223,953 |
| 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 |
$2,034 |
$2,034 |
$2,034 |
$2,034 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$22,820 |
$33,455 |
$44,514 |
$56,017 |
$67,986 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$7,672 |
-$7,297 |
-$6,911 |
-$6,513 |
-$4,069 |
| Monhtly Cash Flow |
-$639 |
-$608 |
-$576 |
-$543 |
-$339 |
| Cash on Cash Return on Investment |
-0.122% |
-0.116% |
-0.109% |
-0.103% |
-0.064% |
| 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 |