Salem Deal Analysis
Let's look at deal analysis for Salem, OR 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 Salem, Oregon Rental Property
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Typical 20% Down Payment Salem, Oregon Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$383,741
|
|
Purchase Price
|
|
$383,741
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$76,748
|
|
Closing Costs
|
1.000%
|
$3,837
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$18,365
|
|
Total Invested
|
|
$98,951
|
|
Mortgage
|
|
Mortgage Amount
|
|
$306,992.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,515
$2514.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$905
|
|
Property Taxes
|
1.385%
|
$5,315
|
|
Property Insurance
|
0.283%
|
$1,086
|
|
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%
|
$57,561
|
|
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 |
$395,253 |
$407,111 |
$419,324 |
$431,904 |
$444,861 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,512 |
$11,858 |
$12,213 |
$12,580 |
$12,957 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,515 |
$2,590 |
$2,668 |
$2,748 |
$2,830 |
| 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 |
$2,515 |
$2,590 |
$2,668 |
$2,748 |
$2,830 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$75 |
$78 |
$80 |
$82 |
$85 |
| Monthly Gross Operating Income |
$2,439 |
$2,512 |
$2,588 |
$2,665 |
$2,745 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$30,177 |
$31,082 |
$32,015 |
$32,975 |
$33,964 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$30,177 |
$31,082 |
$32,015 |
$32,975 |
$33,964 |
| Annual Vacancy Dollar |
$905 |
$932 |
$960 |
$989 |
$1,019 |
| Annual Gross Operating Income |
$29,272 |
$30,150 |
$31,054 |
$31,986 |
$32,946 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.385% |
1.385% |
1.385% |
1.385% |
1.385% |
| Property Taxes Dollar |
$5,315 |
$5,474 |
$5,638 |
$5,808 |
$5,982 |
| Insurance Percent |
0.283% |
0.283% |
0.283% |
0.283% |
0.283% |
| Insurance Dollar |
$1,086 |
$1,119 |
$1,152 |
$1,187 |
$1,222 |
| 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 |
$2,927 |
$3,015 |
$3,105 |
$3,199 |
$3,295 |
| 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 |
$9,328 |
$9,608 |
$9,896 |
$10,193 |
$10,499 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$19,944 |
$20,542 |
$21,158 |
$21,793 |
$22,447 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$24,509 |
$24,509 |
$24,509 |
$24,509 |
$24,509 |
| Principal |
$3,118 |
$3,344 |
$3,586 |
$3,845 |
$4,123 |
| Interest |
$21,391 |
$21,165 |
$20,924 |
$20,664 |
$20,386 |
| Loan Balance at End of Year |
$303,874 |
$300,530 |
$296,945 |
$293,100 |
$288,977 |
| 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 |
$91,379 |
$106,580 |
$122,379 |
$138,804 |
$155,884 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$4,565 |
-$3,967 |
-$3,351 |
-$2,716 |
-$2,062 |
| Monhtly Cash Flow |
-$380 |
-$331 |
-$279 |
-$226 |
-$172 |
| Cash on Cash Return on Investment |
-0.046% |
-0.040% |
-0.034% |
-0.027% |
-0.021% |
| 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 |