Orange Deal Analysis
Let's look at deal analysis for Orange, 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 Orange, California Rental Property
|
Typical 20% Down Payment Orange, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$930,340
|
|
Purchase Price
|
|
$930,340
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$186,068
|
|
Closing Costs
|
1.000%
|
$9,303
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$132,251
|
|
Total Invested
|
|
$327,622
|
|
Mortgage
|
|
Mortgage Amount
|
|
$744,272
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$4,725
$4725.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,701
|
|
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
|
|
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 |
$4,725 |
$4,867 |
$5,013 |
$5,163 |
$5,318 |
| 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 |
$4,725 |
$4,867 |
$5,013 |
$5,163 |
$5,318 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$142 |
$146 |
$150 |
$155 |
$160 |
| Monthly Gross Operating Income |
$4,583 |
$4,721 |
$4,862 |
$5,008 |
$5,158 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$56,700 |
$58,401 |
$60,153 |
$61,958 |
$63,816 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$56,700 |
$58,401 |
$60,153 |
$61,958 |
$63,816 |
| Annual Vacancy Dollar |
$1,701 |
$1,752 |
$1,805 |
$1,859 |
$1,914 |
| Annual Gross Operating Income |
$54,999 |
$56,649 |
$58,348 |
$60,099 |
$61,902 |
| 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 |
$5,500 |
$5,665 |
$5,835 |
$6,010 |
$6,190 |
| 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 |
$14,106 |
$14,529 |
$14,965 |
$15,414 |
$15,876 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$40,893 |
$42,120 |
$43,384 |
$44,685 |
$46,026 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$59,420 |
$59,420 |
$59,420 |
$59,420 |
$59,420 |
| Principal |
$7,560 |
$8,107 |
$8,693 |
$9,321 |
$9,995 |
| Interest |
$51,860 |
$51,313 |
$50,727 |
$50,099 |
$49,425 |
| Loan Balance at End of Year |
$736,712 |
$728,605 |
$719,912 |
$710,590 |
$700,595 |
| 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 |
$221,539 |
$258,393 |
$296,696 |
$336,516 |
$377,924 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$18,526 |
-$17,300 |
-$16,036 |
-$14,735 |
-$13,394 |
| Monhtly Cash Flow |
-$1,544 |
-$1,442 |
-$1,336 |
-$1,228 |
-$1,116 |
| Cash on Cash Return on Investment |
-0.057% |
-0.053% |
-0.049% |
-0.045% |
-0.041% |
| 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 |