Providence Deal Analysis
Let's look at deal analysis for Providence, RI 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 Providence, Rhode Island Nomad™ Property with 10% Higher Rents
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Typical Providence, Rhode Island Nomad™ Property with 10% Higher Rents
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|
Purchase Inputs
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|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$302,369
|
|
Purchase Price
|
|
$302,369
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$15,118
|
|
Closing Costs
|
1.000%
|
$3,024
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$18,142
|
|
Mortgage
|
|
Mortgage Amount
|
|
$287,250.55
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$203.47
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,234
$3234.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$1,164
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Property Taxes
|
1.867%
|
$5,645
|
|
Property Insurance
|
0.453%
|
$1,370
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$45,355
|
|
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 |
$311,440 |
$320,783 |
$330,407 |
$340,319 |
$350,529 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$9,071 |
$9,343 |
$9,623 |
$9,912 |
$10,210 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,234 |
$3,331 |
$3,431 |
$3,534 |
$3,640 |
| 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 |
$3,234 |
$3,331 |
$3,431 |
$3,534 |
$3,640 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$97 |
$100 |
$103 |
$106 |
$109 |
| Monthly Gross Operating Income |
$3,137 |
$3,231 |
$3,328 |
$3,428 |
$3,531 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$38,808 |
$39,972 |
$41,171 |
$42,407 |
$43,679 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$38,808 |
$39,972 |
$41,171 |
$42,407 |
$43,679 |
| Annual Vacancy Dollar |
$1,164 |
$1,199 |
$1,235 |
$1,272 |
$1,310 |
| Annual Gross Operating Income |
$37,644 |
$38,773 |
$39,936 |
$41,134 |
$42,368 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.867% |
1.867% |
1.867% |
1.867% |
1.867% |
| Property Taxes Dollar |
$5,645 |
$5,815 |
$5,989 |
$6,169 |
$6,354 |
| Insurance Percent |
0.453% |
0.453% |
0.453% |
0.453% |
0.453% |
| Insurance Dollar |
$1,370 |
$1,411 |
$1,453 |
$1,497 |
$1,542 |
| 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 |
$3,764 |
$3,877 |
$3,994 |
$4,113 |
$4,237 |
| 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 |
$10,779 |
$11,103 |
$11,436 |
$11,779 |
$12,132 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$26,864 |
$27,670 |
$28,500 |
$29,355 |
$30,236 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$21,787 |
$21,787 |
$21,787 |
$21,787 |
$21,787 |
| Principal |
$3,211 |
$3,426 |
$3,655 |
$3,900 |
$4,161 |
| Interest |
$18,577 |
$18,362 |
$18,132 |
$17,888 |
$17,626 |
| Loan Balance at End of Year |
$284,040 |
$280,614 |
$276,959 |
$273,059 |
$268,898 |
| 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 |
$2,442 |
$2,442 |
$2,442 |
$2,442 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$27,400 |
$40,169 |
$53,448 |
$67,260 |
$81,631 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$2,635 |
$3,441 |
$4,271 |
$5,126 |
$8,449 |
| Monhtly Cash Flow |
$220 |
$287 |
$356 |
$427 |
$704 |
| Cash on Cash Return on Investment |
0.145% |
0.190% |
0.235% |
0.283% |
0.466% |
| 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 |