Orange Deal Analysis
Let's look at deal analysis for Orange, 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 Orange, California Nomad™ Property with 10% Higher Rents
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Typical Orange, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$930,340
|
|
Purchase Price
|
|
$930,340
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$46,517
|
|
Closing Costs
|
1.000%
|
$9,303
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$183,059
|
|
Total Invested
|
|
$238,879
|
|
Mortgage
|
|
Mortgage Amount
|
|
$883,823
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$626.04
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$5,198
$5197.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,871
|
|
Property Taxes
|
0.752%
|
$6,996
|
|
Property Insurance
|
0.173%
|
$1,609
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$139,551
|
|
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 |
$958,250 |
$986,998 |
$1,016,608 |
$1,047,106 |
$1,078,519 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$27,910 |
$28,748 |
$29,610 |
$30,498 |
$31,413 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$5,198 |
$5,353 |
$5,514 |
$5,679 |
$5,850 |
| 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 |
$5,198 |
$5,353 |
$5,514 |
$5,679 |
$5,850 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$156 |
$161 |
$165 |
$170 |
$175 |
| Monthly Gross Operating Income |
$5,042 |
$5,193 |
$5,349 |
$5,509 |
$5,674 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$62,370 |
$64,241 |
$66,168 |
$68,153 |
$70,198 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$62,370 |
$64,241 |
$66,168 |
$68,153 |
$70,198 |
| Annual Vacancy Dollar |
$1,871 |
$1,927 |
$1,985 |
$2,045 |
$2,106 |
| Annual Gross Operating Income |
$60,499 |
$62,314 |
$64,183 |
$66,109 |
$68,092 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.752% |
0.752% |
0.752% |
0.752% |
0.752% |
| Property Taxes Dollar |
$6,996 |
$7,206 |
$7,422 |
$7,645 |
$7,874 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,609 |
$1,658 |
$1,708 |
$1,759 |
$1,811 |
| 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 |
$6,050 |
$6,231 |
$6,418 |
$6,611 |
$6,809 |
| 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 |
$14,656 |
$15,095 |
$15,548 |
$16,014 |
$16,495 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$45,843 |
$47,219 |
$48,635 |
$50,094 |
$51,597 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$67,036 |
$67,036 |
$67,036 |
$67,036 |
$67,036 |
| Principal |
$9,879 |
$10,540 |
$11,246 |
$11,999 |
$12,803 |
| Interest |
$57,158 |
$56,496 |
$55,790 |
$55,037 |
$54,233 |
| Loan Balance at End of Year |
$873,944 |
$863,404 |
$852,158 |
$840,159 |
$827,356 |
| 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 |
$7,512 |
$7,512 |
$7,512 |
$7,512 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$84,306 |
$123,594 |
$164,450 |
$206,947 |
$251,164 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$28,705 |
-$27,330 |
-$25,914 |
-$24,455 |
-$15,439 |
| Monhtly Cash Flow |
-$2,392 |
-$2,278 |
-$2,159 |
-$2,038 |
-$1,287 |
| Cash on Cash Return on Investment |
-0.120% |
-0.114% |
-0.108% |
-0.102% |
-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 |