Erie Deal Analysis

Let's look at deal analysis for Erie, PA 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 Erie, Pennsylvania Nomad™ Property with 10% Higher Rents

Typical Erie, Pennsylvania Nomad™ Property with 10% Higher Rents
Purchase Inputs
	Percents	Dollars/#
ARV		$138,237
Purchase Price		$138,237
Seller Concessions	—	$0
Down Payment	5.000%	$6,912
Closing Costs	1.000%	$1,382
Rent Ready Costs		$0
Cumulative Negative Cash Flow		$3,485
Total Invested		$11,780
Mortgage
Mortgage Amount		$131,325.15
Mortgage Interest Rate	6.500%
Loan Term		360
Private Mortgage Insurance	0.850%	$93.02
Drop PMI LTV	80.000%
Income
Monthly Rent		$1,363 $1362.90
Other Income		$0
Annual Expenses
Vacancy Rate	3.000%	$491
Property Taxes	2.740%	$3,788
Property Insurance	0.566%	$782
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%	$20,736
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	$142,384	$146,656	$151,055	$155,587	$160,255
Appreciation Rate	3.000%	3.000%	3.000%	3.000%	3.000%
Appreciation Dollar	$4,147	$4,272	$4,400	$4,532	$4,668
Monthly Income	1	2	3	4	5
Rent Appreciation Rate		3.000%	3.000%	3.000%	3.000%
Monthly Rent	$1,363	$1,404	$1,446	$1,489	$1,534
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	$1,363	$1,404	$1,446	$1,489	$1,534
Vacancy Percent	3.000%	3.000%	3.000%	3.000%	3.000%
Monthly Vacancy Dollar	$41	$42	$43	$45	$46
Monthly Gross Operating Income	$1,322	$1,362	$1,403	$1,445	$1,488
Annual Income	1	2	3	4	5
Annual Rent	$16,355	$16,845	$17,351	$17,871	$18,407
Annual Other Income	$0	$0	$0	$0	$0
Annual Gross Potential Income	$16,355	$16,845	$17,351	$17,871	$18,407
Annual Vacancy Dollar	$491	$505	$521	$536	$552
Annual Gross Operating Income	$15,864	$16,340	$16,830	$17,335	$17,855
Annual Expenses	1	2	3	4	5
Property Taxes Percent	2.740%	2.740%	2.740%	2.740%	2.740%
Property Taxes Dollar	$3,788	$3,901	$4,018	$4,139	$4,263
Insurance Percent	0.566%	0.566%	0.566%	0.566%	0.566%
Insurance Dollar	$782	$806	$830	$855	$881
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	$1,586	$1,634	$1,683	$1,734	$1,786
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	$6,157	$6,341	$6,531	$6,727	$6,929
Net Operating Income	1	2	3	4	5
Net Operating Income (NOI)	$9,708	$9,999	$10,299	$10,608	$10,926
Mortgage	1	2	3	4	5
Total Annual P&I Payments	$9,961	$9,961	$9,961	$9,961	$9,961
Principal	$1,468	$1,566	$1,671	$1,783	$1,902
Interest	$8,493	$8,395	$8,290	$8,178	$8,058
Loan Balance at End of Year	$129,857	$128,291	$126,620	$124,837	$122,935
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	$1,116	$1,116	$1,116	$1,116	$0
Equity	1	2	3	4	5
ARV - Loan Balance at End of Year	$12,527	$18,364	$24,435	$30,750	$37,320
Cash Flow	1	2	3	4	5
Annual Cash Flow	-$1,369	-$1,078	-$778	-$469	$965
Monhtly Cash Flow	-$114	-$90	-$65	-$39	$80
Cash on Cash Return on Investment	-0.116%	-0.092%	-0.066%	-0.040%	0.082%
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