Houston Deal Analysis
Let's look at deal analysis for Houston, TX 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 Houston, Texas Rental Property
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Typical 20% Down Payment Houston, Texas Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$235,354
|
|
Purchase Price
|
|
$235,354
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$47,071
|
|
Closing Costs
|
1.000%
|
$2,354
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$49,424
|
|
Mortgage
|
|
Mortgage Amount
|
|
$188,283.20
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,360
$3360.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,210
|
|
Property Taxes
|
2.247%
|
$5,288
|
|
Property Insurance
|
1.419%
|
$3,340
|
|
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%
|
$35,303
|
|
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 |
$242,415 |
$249,687 |
$257,178 |
$264,893 |
$272,840 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,061 |
$7,272 |
$7,491 |
$7,715 |
$7,947 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,360 |
$3,461 |
$3,565 |
$3,672 |
$3,782 |
| 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 |
$3,360 |
$3,461 |
$3,565 |
$3,672 |
$3,782 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$101 |
$104 |
$107 |
$110 |
$113 |
| Monthly Gross Operating Income |
$3,259 |
$3,357 |
$3,458 |
$3,561 |
$3,668 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$40,320 |
$41,530 |
$42,775 |
$44,059 |
$45,381 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$40,320 |
$41,530 |
$42,775 |
$44,059 |
$45,381 |
| Annual Vacancy Dollar |
$1,210 |
$1,246 |
$1,283 |
$1,322 |
$1,361 |
| Annual Gross Operating Income |
$39,110 |
$40,284 |
$41,492 |
$42,737 |
$44,019 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.247% |
2.247% |
2.247% |
2.247% |
2.247% |
| Property Taxes Dollar |
$5,288 |
$5,447 |
$5,610 |
$5,779 |
$5,952 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$3,340 |
$3,440 |
$3,543 |
$3,649 |
$3,759 |
| 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 |
$3,911 |
$4,028 |
$4,149 |
$4,274 |
$4,402 |
| 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 |
$12,539 |
$12,915 |
$13,303 |
$13,702 |
$14,113 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$26,571 |
$27,368 |
$28,189 |
$29,035 |
$29,906 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$15,032 |
$15,032 |
$15,032 |
$15,032 |
$15,032 |
| Principal |
$1,913 |
$2,051 |
$2,199 |
$2,358 |
$2,529 |
| Interest |
$13,119 |
$12,981 |
$12,833 |
$12,674 |
$12,503 |
| Loan Balance at End of Year |
$186,371 |
$184,320 |
$182,121 |
$179,763 |
$177,234 |
| 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 |
$56,044 |
$65,367 |
$75,057 |
$85,130 |
$95,606 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$11,539 |
$12,337 |
$13,158 |
$14,003 |
$14,874 |
| Monhtly Cash Flow |
$962 |
$1,028 |
$1,096 |
$1,167 |
$1,240 |
| Cash on Cash Return on Investment |
0.233% |
0.250% |
0.266% |
0.283% |
0.301% |
| 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 |