Palmdale Deal Analysis
Let's look at deal analysis for Palmdale, 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 Palmdale, California Nomad™ Property with 10% Higher Rents
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Typical Palmdale, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
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Percents
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Dollars/#
|
|
ARV
|
|
$435,931
|
|
Purchase Price
|
|
$435,931
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$21,797
|
|
Closing Costs
|
1.000%
|
$4,359
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$43,465
|
|
Total Invested
|
|
$69,621
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|
Mortgage
|
|
Mortgage Amount
|
|
$414,134.45
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|
Mortgage Interest Rate
|
6.500%
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|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$293.35
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,003
$3003.00
|
|
Other Income
|
|
$0
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|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$1,081
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|
Property Taxes
|
1.342%
|
$5,850
|
|
Property Insurance
|
0.173%
|
$754
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
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Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
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|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$65,390
|
|
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 |
$449,009 |
$462,479 |
$476,354 |
$490,644 |
$505,364 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$13,078 |
$13,470 |
$13,874 |
$14,291 |
$14,719 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,003 |
$3,093 |
$3,186 |
$3,281 |
$3,380 |
| 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 |
$3,003 |
$3,093 |
$3,186 |
$3,281 |
$3,380 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$90 |
$93 |
$96 |
$98 |
$101 |
| Monthly Gross Operating Income |
$2,913 |
$3,000 |
$3,090 |
$3,183 |
$3,279 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$36,036 |
$37,117 |
$38,231 |
$39,378 |
$40,559 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$36,036 |
$37,117 |
$38,231 |
$39,378 |
$40,559 |
| Annual Vacancy Dollar |
$1,081 |
$1,114 |
$1,147 |
$1,181 |
$1,217 |
| Annual Gross Operating Income |
$34,955 |
$36,004 |
$37,084 |
$38,196 |
$39,342 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.342% |
1.342% |
1.342% |
1.342% |
1.342% |
| Property Taxes Dollar |
$5,850 |
$6,026 |
$6,206 |
$6,393 |
$6,584 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$754 |
$777 |
$800 |
$824 |
$849 |
| 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 |
$3,495 |
$3,600 |
$3,708 |
$3,820 |
$3,934 |
| 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 |
$10,100 |
$10,403 |
$10,715 |
$11,036 |
$11,367 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$24,855 |
$25,601 |
$26,369 |
$27,160 |
$27,975 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$31,411 |
$31,411 |
$31,411 |
$31,411 |
$31,411 |
| Principal |
$4,629 |
$4,939 |
$5,270 |
$5,623 |
$5,999 |
| Interest |
$26,782 |
$26,472 |
$26,142 |
$25,789 |
$25,412 |
| Loan Balance at End of Year |
$409,506 |
$404,567 |
$399,297 |
$393,675 |
$387,675 |
| 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 |
$3,520 |
$3,520 |
$3,520 |
$3,520 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$39,503 |
$57,912 |
$77,057 |
$96,970 |
$117,688 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$10,076 |
-$9,331 |
-$8,563 |
-$7,772 |
-$3,437 |
| Monhtly Cash Flow |
-$840 |
-$778 |
-$714 |
-$648 |
-$286 |
| Cash on Cash Return on Investment |
-0.145% |
-0.134% |
-0.123% |
-0.112% |
-0.049% |
| 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 |