Birmingham Deal Analysis
Let's look at deal analysis for Birmingham, AL 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 Birmingham, Alabama Nomad™ Property with 10% Higher Rents
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Typical Birmingham, Alabama Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$89,901
|
|
Purchase Price
|
|
$89,901
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$4,495
|
|
Closing Costs
|
1.000%
|
$899
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$5,394
|
|
Mortgage
|
|
Mortgage Amount
|
|
$85,405.95
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$60.50
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$934
$934.40
|
|
Other Income
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|
$0
|
|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$336
|
|
Property Taxes
|
0.700%
|
$629
|
|
Property Insurance
|
1.958%
|
$1,760
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
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Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$13,485
|
|
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 |
$92,598 |
$95,376 |
$98,237 |
$101,184 |
$104,220 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$2,697 |
$2,778 |
$2,861 |
$2,947 |
$3,036 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$934 |
$962 |
$991 |
$1,021 |
$1,052 |
| 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 |
$934 |
$962 |
$991 |
$1,021 |
$1,052 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$28 |
$29 |
$30 |
$31 |
$32 |
| Monthly Gross Operating Income |
$906 |
$934 |
$962 |
$990 |
$1,020 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$11,213 |
$11,549 |
$11,896 |
$12,253 |
$12,620 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$11,213 |
$11,549 |
$11,896 |
$12,253 |
$12,620 |
| Annual Vacancy Dollar |
$336 |
$346 |
$357 |
$368 |
$379 |
| Annual Gross Operating Income |
$10,876 |
$11,203 |
$11,539 |
$11,885 |
$12,242 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.700% |
0.700% |
0.700% |
0.700% |
0.700% |
| Property Taxes Dollar |
$629 |
$648 |
$668 |
$688 |
$708 |
| Insurance Percent |
1.958% |
1.958% |
1.958% |
1.958% |
1.958% |
| Insurance Dollar |
$1,760 |
$1,813 |
$1,867 |
$1,923 |
$1,981 |
| 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 |
$1,088 |
$1,120 |
$1,154 |
$1,188 |
$1,224 |
| 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 |
$3,477 |
$3,582 |
$3,689 |
$3,800 |
$3,914 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$7,399 |
$7,621 |
$7,850 |
$8,085 |
$8,328 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$6,478 |
$6,478 |
$6,478 |
$6,478 |
$6,478 |
| Principal |
$955 |
$1,018 |
$1,087 |
$1,159 |
$1,237 |
| Interest |
$5,523 |
$5,459 |
$5,391 |
$5,318 |
$5,241 |
| Loan Balance at End of Year |
$84,451 |
$83,433 |
$82,346 |
$81,187 |
$79,950 |
| 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 |
$726 |
$726 |
$726 |
$726 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$8,147 |
$11,943 |
$15,891 |
$19,998 |
$24,270 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$195 |
$417 |
$646 |
$882 |
$1,850 |
| Monhtly Cash Flow |
$16 |
$35 |
$54 |
$73 |
$154 |
| Cash on Cash Return on Investment |
0.036% |
0.077% |
0.120% |
0.163% |
0.343% |
| 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 |