Costa Mesa Deal Analysis
Let's look at deal analysis for Costa Mesa, CA 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 Costa Mesa, California Rental Property
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Typical 20% Down Payment Costa Mesa, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,142,953
|
|
Purchase Price
|
|
$1,142,953
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$228,591
|
|
Closing Costs
|
1.000%
|
$11,430
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$208,196
|
|
Total Invested
|
|
$448,216
|
|
Mortgage
|
|
Mortgage Amount
|
|
$914,362.40
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$5,539
$5538.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,994
|
|
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 |
$5,539 |
$5,705 |
$5,876 |
$6,052 |
$6,234 |
| 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 |
$5,539 |
$5,705 |
$5,876 |
$6,052 |
$6,234 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$166 |
$171 |
$176 |
$182 |
$187 |
| Monthly Gross Operating Income |
$5,373 |
$5,534 |
$5,700 |
$5,871 |
$6,047 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$66,465 |
$68,459 |
$70,513 |
$72,628 |
$74,807 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$66,465 |
$68,459 |
$70,513 |
$72,628 |
$74,807 |
| Annual Vacancy Dollar |
$1,994 |
$2,054 |
$2,115 |
$2,179 |
$2,244 |
| Annual Gross Operating Income |
$64,471 |
$66,405 |
$68,397 |
$70,449 |
$72,563 |
| 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 |
$6,447 |
$6,641 |
$6,840 |
$7,045 |
$7,256 |
| 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 |
$16,905 |
$17,412 |
$17,935 |
$18,473 |
$19,027 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$47,566 |
$48,993 |
$50,463 |
$51,977 |
$53,536 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$72,999 |
$72,999 |
$72,999 |
$72,999 |
$72,999 |
| Principal |
$9,288 |
$9,960 |
$10,680 |
$11,452 |
$12,280 |
| Interest |
$63,711 |
$63,040 |
$62,320 |
$61,548 |
$60,720 |
| Loan Balance at End of Year |
$905,074 |
$895,114 |
$884,435 |
$872,983 |
$860,704 |
| 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 |
$272,167 |
$317,444 |
$364,501 |
$413,421 |
$464,292 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$25,433 |
-$24,006 |
-$22,537 |
-$21,023 |
-$19,463 |
| Monhtly Cash Flow |
-$2,119 |
-$2,001 |
-$1,878 |
-$1,752 |
-$1,622 |
| Cash on Cash Return on Investment |
-0.057% |
-0.054% |
-0.050% |
-0.047% |
-0.043% |
| 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 |