McKinney Deal Analysis
Let's look at deal analysis for McKinney, TX 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 McKinney, Texas Nomad™ Property with 10% Higher Rents
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Typical McKinney, Texas 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/#
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|
ARV
|
|
$451,172
|
|
Purchase Price
|
|
$451,172
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$22,559
|
|
Closing Costs
|
1.000%
|
$4,512
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$166,399
|
|
Total Invested
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$193,469
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Mortgage
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|
Mortgage Amount
|
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$428,613.40
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Mortgage Interest Rate
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6.500%
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|
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Loan Term
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|
360
|
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Private Mortgage Insurance
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0.850%
|
$303.60
|
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Drop PMI LTV
|
80.000%
|
|
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Income
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|
Monthly Rent
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$3,292
$3291.75
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Other Income
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|
$0
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Annual Expenses
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Vacancy Rate
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3.000%
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$1,185
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Property Taxes
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2.126%
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$9,592
|
|
Property Insurance
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1.419%
|
$6,402
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|
HOA Dues
|
|
$0
|
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Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
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|
Other Expenses 2
|
|
$0
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Maintenance
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10.000%
|
|
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CapEx
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|
$0
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Management
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0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$67,676
|
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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 |
$464,707 |
$478,648 |
$493,008 |
$507,798 |
$523,032 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$13,535 |
$13,941 |
$14,359 |
$14,790 |
$15,234 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,292 |
$3,391 |
$3,492 |
$3,597 |
$3,705 |
| 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 |
$3,292 |
$3,391 |
$3,492 |
$3,597 |
$3,705 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$99 |
$102 |
$105 |
$108 |
$111 |
| Monthly Gross Operating Income |
$3,193 |
$3,289 |
$3,387 |
$3,489 |
$3,594 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$39,501 |
$40,686 |
$41,907 |
$43,164 |
$44,459 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$39,501 |
$40,686 |
$41,907 |
$43,164 |
$44,459 |
| Annual Vacancy Dollar |
$1,185 |
$1,221 |
$1,257 |
$1,295 |
$1,334 |
| Annual Gross Operating Income |
$38,316 |
$39,465 |
$40,649 |
$41,869 |
$43,125 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.126% |
2.126% |
2.126% |
2.126% |
2.126% |
| Property Taxes Dollar |
$9,592 |
$9,880 |
$10,176 |
$10,481 |
$10,796 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$6,402 |
$6,594 |
$6,792 |
$6,996 |
$7,206 |
| 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 |
$3,832 |
$3,947 |
$4,065 |
$4,187 |
$4,312 |
| 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 |
$19,826 |
$20,420 |
$21,033 |
$21,664 |
$22,314 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$18,490 |
$19,045 |
$19,616 |
$20,205 |
$20,811 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$32,510 |
$32,510 |
$32,510 |
$32,510 |
$32,510 |
| Principal |
$4,791 |
$5,112 |
$5,454 |
$5,819 |
$6,209 |
| Interest |
$27,719 |
$27,398 |
$27,056 |
$26,690 |
$26,301 |
| Loan Balance at End of Year |
$423,823 |
$418,711 |
$413,257 |
$407,438 |
$401,229 |
| 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 |
$3,643 |
$3,643 |
$3,643 |
$3,643 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$40,885 |
$59,937 |
$79,751 |
$100,360 |
$121,803 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$17,662 |
-$17,108 |
-$16,536 |
-$15,948 |
-$11,699 |
| Monhtly Cash Flow |
-$1,472 |
-$1,426 |
-$1,378 |
-$1,329 |
-$975 |
| Cash on Cash Return on Investment |
-0.091% |
-0.088% |
-0.085% |
-0.082% |
-0.060% |
| 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 |