Los Angeles Deal Analysis
Let's look at deal analysis for Los Angeles, 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 Los Angeles, California Rental Property
|
Typical 20% Down Payment Los Angeles, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$930,981
|
|
Purchase Price
|
|
$930,981
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$186,196
|
|
Closing Costs
|
1.000%
|
$9,310
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$88,510
|
|
Total Invested
|
|
$284,016
|
|
Mortgage
|
|
Mortgage Amount
|
|
$744,784.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$5,040
$5040.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,814
|
|
Property Taxes
|
0.766%
|
$7,131
|
|
Property Insurance
|
0.173%
|
$1,611
|
|
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%
|
$139,647
|
|
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 |
$958,910 |
$987,678 |
$1,017,308 |
$1,047,827 |
$1,079,262 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$27,929 |
$28,767 |
$29,630 |
$30,519 |
$31,435 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$5,040 |
$5,191 |
$5,347 |
$5,507 |
$5,673 |
| 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 |
$5,040 |
$5,191 |
$5,347 |
$5,507 |
$5,673 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$151 |
$156 |
$160 |
$165 |
$170 |
| Monthly Gross Operating Income |
$4,889 |
$5,035 |
$5,187 |
$5,342 |
$5,502 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$60,480 |
$62,294 |
$64,163 |
$66,088 |
$68,071 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$60,480 |
$62,294 |
$64,163 |
$66,088 |
$68,071 |
| Annual Vacancy Dollar |
$1,814 |
$1,869 |
$1,925 |
$1,983 |
$2,042 |
| Annual Gross Operating Income |
$58,666 |
$60,426 |
$62,238 |
$64,105 |
$66,029 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.766% |
0.766% |
0.766% |
0.766% |
0.766% |
| Property Taxes Dollar |
$7,131 |
$7,345 |
$7,566 |
$7,793 |
$8,026 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,611 |
$1,659 |
$1,709 |
$1,760 |
$1,813 |
| 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 |
$5,867 |
$6,043 |
$6,224 |
$6,411 |
$6,603 |
| 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 |
$14,608 |
$15,047 |
$15,498 |
$15,963 |
$16,442 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$44,057 |
$45,379 |
$46,740 |
$48,142 |
$49,587 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$59,461 |
$59,461 |
$59,461 |
$59,461 |
$59,461 |
| Principal |
$7,566 |
$8,112 |
$8,699 |
$9,328 |
$10,002 |
| Interest |
$51,895 |
$51,348 |
$50,762 |
$50,133 |
$49,459 |
| Loan Balance at End of Year |
$737,219 |
$729,107 |
$720,408 |
$711,080 |
$701,078 |
| 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 |
$221,691 |
$258,571 |
$296,900 |
$336,747 |
$378,184 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$15,404 |
-$14,082 |
-$12,721 |
-$11,318 |
-$9,874 |
| Monhtly Cash Flow |
-$1,284 |
-$1,173 |
-$1,060 |
-$943 |
-$823 |
| Cash on Cash Return on Investment |
-0.054% |
-0.050% |
-0.045% |
-0.040% |
-0.035% |
| 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 |