Richardson Deal Analysis
Let's look at deal analysis for Richardson, 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 Richardson, Texas Nomad™ Property with 10% Higher Rents
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Typical Richardson, Texas Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$394,268
|
|
Purchase Price
|
|
$394,268
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$19,713
|
|
Closing Costs
|
1.000%
|
$3,943
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$102,069
|
|
Total Invested
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$125,725
|
|
Mortgage
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|
Mortgage Amount
|
|
$374,554.60
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|
Mortgage Interest Rate
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6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$265.31
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
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|
$2,945
$2945.25
|
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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%
|
$1,060
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Property Taxes
|
1.826%
|
$7,199
|
|
Property Insurance
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1.419%
|
$5,595
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
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|
Maintenance
|
10.000%
|
|
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CapEx
|
|
$0
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Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$59,140
|
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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 |
$406,096 |
$418,279 |
$430,827 |
$443,752 |
$457,065 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,828 |
$12,183 |
$12,548 |
$12,925 |
$13,313 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,945 |
$3,034 |
$3,125 |
$3,218 |
$3,315 |
| 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 |
$2,945 |
$3,034 |
$3,125 |
$3,218 |
$3,315 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$88 |
$91 |
$94 |
$97 |
$99 |
| Monthly Gross Operating Income |
$2,857 |
$2,943 |
$3,031 |
$3,122 |
$3,215 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$35,343 |
$36,403 |
$37,495 |
$38,620 |
$39,779 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$35,343 |
$36,403 |
$37,495 |
$38,620 |
$39,779 |
| Annual Vacancy Dollar |
$1,060 |
$1,092 |
$1,125 |
$1,159 |
$1,193 |
| Annual Gross Operating Income |
$34,283 |
$35,311 |
$36,371 |
$37,462 |
$38,585 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.826% |
1.826% |
1.826% |
1.826% |
1.826% |
| Property Taxes Dollar |
$7,199 |
$7,415 |
$7,638 |
$7,867 |
$8,103 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$5,595 |
$5,763 |
$5,935 |
$6,113 |
$6,297 |
| 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 |
$3,428 |
$3,531 |
$3,637 |
$3,746 |
$3,859 |
| 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 |
$16,222 |
$16,709 |
$17,210 |
$17,727 |
$18,258 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$18,060 |
$18,602 |
$19,160 |
$19,735 |
$20,327 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$28,409 |
$28,409 |
$28,409 |
$28,409 |
$28,409 |
| Principal |
$4,186 |
$4,467 |
$4,766 |
$5,085 |
$5,426 |
| Interest |
$24,223 |
$23,942 |
$23,643 |
$23,324 |
$22,983 |
| Loan Balance at End of Year |
$370,368 |
$365,901 |
$361,135 |
$356,050 |
$350,624 |
| 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 |
$3,184 |
$3,184 |
$3,184 |
$3,184 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$35,728 |
$52,378 |
$69,692 |
$87,702 |
$106,440 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$13,533 |
-$12,991 |
-$12,433 |
-$11,858 |
-$8,082 |
| Monhtly Cash Flow |
-$1,128 |
-$1,083 |
-$1,036 |
-$988 |
-$674 |
| Cash on Cash Return on Investment |
-0.108% |
-0.103% |
-0.099% |
-0.094% |
-0.064% |
| 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 |