Lancaster Deal Analysis
Let's look at deal analysis for Lancaster, 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 Lancaster, California Rental Property
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Typical 20% Down Payment Lancaster, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$405,167
|
|
Purchase Price
|
|
$405,167
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$81,033
|
|
Closing Costs
|
1.000%
|
$4,052
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$4,310
|
|
Total Invested
|
|
$89,395
|
|
Mortgage
|
|
Mortgage Amount
|
|
$324,133.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,783
$2782.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,002
|
|
Property Taxes
|
1.180%
|
$4,781
|
|
Property Insurance
|
0.173%
|
$701
|
|
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%
|
$60,775
|
|
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 |
$417,322 |
$429,842 |
$442,737 |
$456,019 |
$469,700 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$12,155 |
$12,520 |
$12,895 |
$13,282 |
$13,681 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,783 |
$2,866 |
$2,952 |
$3,041 |
$3,132 |
| 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 |
$2,783 |
$2,866 |
$2,952 |
$3,041 |
$3,132 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$83 |
$86 |
$89 |
$91 |
$94 |
| Monthly Gross Operating Income |
$2,699 |
$2,780 |
$2,863 |
$2,949 |
$3,038 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$33,390 |
$34,392 |
$35,423 |
$36,486 |
$37,581 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$33,390 |
$34,392 |
$35,423 |
$36,486 |
$37,581 |
| Annual Vacancy Dollar |
$1,002 |
$1,032 |
$1,063 |
$1,095 |
$1,127 |
| Annual Gross Operating Income |
$32,388 |
$33,360 |
$34,361 |
$35,392 |
$36,453 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.180% |
1.180% |
1.180% |
1.180% |
1.180% |
| Property Taxes Dollar |
$4,781 |
$4,924 |
$5,072 |
$5,224 |
$5,381 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$701 |
$722 |
$744 |
$766 |
$789 |
| 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 |
$3,239 |
$3,336 |
$3,436 |
$3,539 |
$3,645 |
| 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 |
$8,721 |
$8,982 |
$9,252 |
$9,529 |
$9,815 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$23,668 |
$24,378 |
$25,109 |
$25,862 |
$26,638 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$25,878 |
$25,878 |
$25,878 |
$25,878 |
$25,878 |
| Principal |
$3,293 |
$3,531 |
$3,786 |
$4,060 |
$4,353 |
| Interest |
$22,585 |
$22,347 |
$22,092 |
$21,818 |
$21,525 |
| Loan Balance at End of Year |
$320,841 |
$317,310 |
$313,525 |
$309,465 |
$305,112 |
| 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 |
$96,481 |
$112,531 |
$129,212 |
$146,554 |
$164,588 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$2,210 |
-$1,500 |
-$769 |
-$15 |
$760 |
| Monhtly Cash Flow |
-$184 |
-$125 |
-$64 |
-$1 |
$63 |
| Cash on Cash Return on Investment |
-0.025% |
-0.017% |
-0.009% |
0.000% |
0.009% |
| 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 |