Costa Mesa Deal Analysis
Let's look at deal analysis for Costa Mesa, CA 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 Costa Mesa, California Nomad™ Property with 10% Higher Rents
|
Typical Costa Mesa, California Nomad™ Property with 10% Higher Rents
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,142,953
|
|
Purchase Price
|
|
$1,142,953
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$57,148
|
|
Closing Costs
|
1.000%
|
$11,430
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$276,361
|
|
Total Invested
|
|
$344,938
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,085,805.35
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$769.11
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$6,093
$6092.63
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$2,193
|
|
Property Taxes
|
0.742%
|
$8,481
|
|
Property Insurance
|
0.173%
|
$1,977
|
|
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%
|
$171,443
|
|
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 |
$1,177,242 |
$1,212,559 |
$1,248,936 |
$1,286,404 |
$1,324,996 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$34,289 |
$35,317 |
$36,377 |
$37,468 |
$38,592 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$6,093 |
$6,275 |
$6,464 |
$6,658 |
$6,857 |
| 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 |
$6,093 |
$6,275 |
$6,464 |
$6,658 |
$6,857 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$183 |
$188 |
$194 |
$200 |
$206 |
| Monthly Gross Operating Income |
$5,910 |
$6,087 |
$6,270 |
$6,458 |
$6,652 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$73,112 |
$75,305 |
$77,564 |
$79,891 |
$82,288 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$73,112 |
$75,305 |
$77,564 |
$79,891 |
$82,288 |
| Annual Vacancy Dollar |
$2,193 |
$2,259 |
$2,327 |
$2,397 |
$2,469 |
| Annual Gross Operating Income |
$70,918 |
$73,046 |
$75,237 |
$77,494 |
$79,819 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.742% |
0.742% |
0.742% |
0.742% |
0.742% |
| Property Taxes Dollar |
$8,481 |
$8,735 |
$8,997 |
$9,267 |
$9,545 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,977 |
$2,037 |
$2,098 |
$2,161 |
$2,225 |
| 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 |
$7,092 |
$7,305 |
$7,524 |
$7,749 |
$7,982 |
| 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 |
$17,550 |
$18,076 |
$18,619 |
$19,177 |
$19,753 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$53,368 |
$54,969 |
$56,619 |
$58,317 |
$60,067 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$82,356 |
$82,356 |
$82,356 |
$82,356 |
$82,356 |
| Principal |
$12,136 |
$12,949 |
$13,816 |
$14,742 |
$15,729 |
| Interest |
$70,220 |
$69,407 |
$68,540 |
$67,615 |
$66,627 |
| Loan Balance at End of Year |
$1,073,669 |
$1,060,720 |
$1,046,904 |
$1,032,162 |
$1,016,433 |
| 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 |
$9,229 |
$9,229 |
$9,229 |
$9,229 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$103,573 |
$151,839 |
$202,032 |
$254,242 |
$308,563 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$38,217 |
-$36,616 |
-$34,967 |
-$33,269 |
-$22,290 |
| Monhtly Cash Flow |
-$3,185 |
-$3,051 |
-$2,914 |
-$2,772 |
-$1,857 |
| Cash on Cash Return on Investment |
-0.111% |
-0.106% |
-0.101% |
-0.096% |
-0.065% |
| 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 |