Memphis Deal Analysis
Let's look at deal analysis for Memphis, TN 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 Memphis, Tennessee Nomad™ Property with 10% Higher Rents
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Typical Memphis, Tennessee Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
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Percents
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Dollars/#
|
|
ARV
|
|
$130,475
|
|
Purchase Price
|
|
$130,475
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$6,524
|
|
Closing Costs
|
1.000%
|
$1,305
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$7,829
|
|
Mortgage
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|
Mortgage Amount
|
|
$123,951.25
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|
Mortgage Interest Rate
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6.500%
|
|
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Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$87.80
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
|
|
$2,714
$2714.25
|
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Other Income
|
|
$0
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Annual Expenses
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|
Vacancy Rate
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3.000%
|
$977
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Property Taxes
|
1.871%
|
$2,441
|
|
Property Insurance
|
1.131%
|
$1,476
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
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Maintenance
|
10.000%
|
|
|
CapEx
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|
$0
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|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$19,571
|
|
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 |
$134,389 |
$138,421 |
$142,574 |
$146,851 |
$151,256 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$3,914 |
$4,032 |
$4,153 |
$4,277 |
$4,406 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,714 |
$2,796 |
$2,880 |
$2,966 |
$3,055 |
| 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 |
$2,714 |
$2,796 |
$2,880 |
$2,966 |
$3,055 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$81 |
$84 |
$86 |
$89 |
$92 |
| Monthly Gross Operating Income |
$2,633 |
$2,712 |
$2,793 |
$2,877 |
$2,963 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$32,571 |
$33,548 |
$34,555 |
$35,591 |
$36,659 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$32,571 |
$33,548 |
$34,555 |
$35,591 |
$36,659 |
| Annual Vacancy Dollar |
$977 |
$1,006 |
$1,037 |
$1,068 |
$1,100 |
| Annual Gross Operating Income |
$31,594 |
$32,542 |
$33,518 |
$34,523 |
$35,559 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.871% |
1.871% |
1.871% |
1.871% |
1.871% |
| Property Taxes Dollar |
$2,441 |
$2,514 |
$2,590 |
$2,668 |
$2,748 |
| Insurance Percent |
1.131% |
1.131% |
1.131% |
1.131% |
1.131% |
| Insurance Dollar |
$1,476 |
$1,520 |
$1,566 |
$1,613 |
$1,661 |
| 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 |
$3,159 |
$3,254 |
$3,352 |
$3,452 |
$3,556 |
| 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 |
$7,076 |
$7,289 |
$7,507 |
$7,732 |
$7,964 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$24,518 |
$25,253 |
$26,011 |
$26,791 |
$27,595 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$9,402 |
$9,402 |
$9,402 |
$9,402 |
$9,402 |
| Principal |
$1,385 |
$1,478 |
$1,577 |
$1,683 |
$1,796 |
| Interest |
$8,016 |
$7,923 |
$7,824 |
$7,719 |
$7,606 |
| Loan Balance at End of Year |
$122,566 |
$121,087 |
$119,510 |
$117,827 |
$116,032 |
| 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 |
$1,054 |
$1,054 |
$1,054 |
$1,054 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$11,823 |
$17,333 |
$23,063 |
$29,023 |
$35,225 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$14,063 |
$14,798 |
$15,556 |
$16,336 |
$18,193 |
| Monhtly Cash Flow |
$1,172 |
$1,233 |
$1,296 |
$1,361 |
$1,516 |
| Cash on Cash Return on Investment |
1.796% |
1.890% |
1.987% |
2.087% |
2.324% |
| 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 |