Madison Deal Analysis
Let's look at deal analysis for Madison, WI 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 Madison, Wisconsin Rental Property
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Typical 20% Down Payment Madison, Wisconsin Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$343,765
|
|
Purchase Price
|
|
$343,765
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$68,753
|
|
Closing Costs
|
1.000%
|
$3,438
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$26,909
|
|
Total Invested
|
|
$99,099
|
|
Mortgage
|
|
Mortgage Amount
|
|
$275,012
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,473
$2472.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$890
|
|
Property Taxes
|
2.137%
|
$7,346
|
|
Property Insurance
|
0.521%
|
$1,791
|
|
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%
|
$51,565
|
|
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 |
$354,078 |
$364,700 |
$375,641 |
$386,911 |
$398,518 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$10,313 |
$10,622 |
$10,941 |
$11,269 |
$11,607 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,473 |
$2,547 |
$2,623 |
$2,702 |
$2,783 |
| 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 |
$2,473 |
$2,547 |
$2,623 |
$2,702 |
$2,783 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$74 |
$76 |
$79 |
$81 |
$83 |
| Monthly Gross Operating Income |
$2,399 |
$2,471 |
$2,545 |
$2,621 |
$2,700 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$29,673 |
$30,563 |
$31,480 |
$32,424 |
$33,397 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$29,673 |
$30,563 |
$31,480 |
$32,424 |
$33,397 |
| Annual Vacancy Dollar |
$890 |
$917 |
$944 |
$973 |
$1,002 |
| Annual Gross Operating Income |
$28,783 |
$29,646 |
$30,536 |
$31,452 |
$32,395 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.137% |
2.137% |
2.137% |
2.137% |
2.137% |
| Property Taxes Dollar |
$7,346 |
$7,567 |
$7,794 |
$8,027 |
$8,268 |
| Insurance Percent |
0.521% |
0.521% |
0.521% |
0.521% |
0.521% |
| Insurance Dollar |
$1,791 |
$1,845 |
$1,900 |
$1,957 |
$2,016 |
| 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 |
$2,878 |
$2,965 |
$3,054 |
$3,145 |
$3,240 |
| 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 |
$12,016 |
$12,376 |
$12,747 |
$13,130 |
$13,524 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$16,767 |
$17,270 |
$17,788 |
$18,322 |
$18,872 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$21,956 |
$21,956 |
$21,956 |
$21,956 |
$21,956 |
| Principal |
$2,794 |
$2,996 |
$3,212 |
$3,444 |
$3,693 |
| Interest |
$19,162 |
$18,960 |
$18,744 |
$18,512 |
$18,263 |
| Loan Balance at End of Year |
$272,218 |
$269,223 |
$266,011 |
$262,567 |
$258,873 |
| 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 |
$81,860 |
$95,477 |
$109,630 |
$124,344 |
$139,645 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$5,189 |
-$4,686 |
-$4,168 |
-$3,634 |
-$3,084 |
| Monhtly Cash Flow |
-$432 |
-$390 |
-$347 |
-$303 |
-$257 |
| Cash on Cash Return on Investment |
-0.052% |
-0.047% |
-0.042% |
-0.037% |
-0.031% |
| 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 |