Santa Barbara Deal Analysis
Let's look at deal analysis for Santa Barbara, 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 Santa Barbara, California Rental Property
|
Typical 20% Down Payment Santa Barbara, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,701,822
|
|
Purchase Price
|
|
$1,701,822
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$340,364
|
|
Closing Costs
|
1.000%
|
$17,018
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$611,289
|
|
Total Invested
|
|
$968,672
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,361,457.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$6,823
$6822.90
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$2,456
|
|
Property Taxes
|
0.610%
|
$10,381
|
|
Property Insurance
|
0.173%
|
$2,944
|
|
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%
|
$255,273
|
|
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 |
$1,752,877 |
$1,805,463 |
$1,859,627 |
$1,915,416 |
$1,972,878 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$51,055 |
$52,586 |
$54,164 |
$55,789 |
$57,462 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$6,823 |
$7,028 |
$7,238 |
$7,456 |
$7,679 |
| 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 |
$6,823 |
$7,028 |
$7,238 |
$7,456 |
$7,679 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$205 |
$211 |
$217 |
$224 |
$230 |
| Monthly Gross Operating Income |
$6,618 |
$6,817 |
$7,021 |
$7,232 |
$7,449 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$81,875 |
$84,331 |
$86,861 |
$89,467 |
$92,151 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$81,875 |
$84,331 |
$86,861 |
$89,467 |
$92,151 |
| Annual Vacancy Dollar |
$2,456 |
$2,530 |
$2,606 |
$2,684 |
$2,765 |
| Annual Gross Operating Income |
$79,419 |
$81,801 |
$84,255 |
$86,783 |
$89,386 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.610% |
0.610% |
0.610% |
0.610% |
0.610% |
| Property Taxes Dollar |
$10,381 |
$10,693 |
$11,013 |
$11,344 |
$11,684 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$2,944 |
$3,032 |
$3,123 |
$3,217 |
$3,314 |
| 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 |
$7,942 |
$8,180 |
$8,426 |
$8,678 |
$8,939 |
| 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 |
$21,267 |
$21,905 |
$22,562 |
$23,239 |
$23,936 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$58,151 |
$59,896 |
$61,693 |
$63,544 |
$65,450 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$108,694 |
$108,694 |
$108,694 |
$108,694 |
$108,694 |
| Principal |
$13,830 |
$14,830 |
$15,902 |
$17,051 |
$18,284 |
| Interest |
$94,864 |
$93,864 |
$92,792 |
$91,643 |
$90,410 |
| Loan Balance at End of Year |
$1,347,628 |
$1,332,798 |
$1,316,897 |
$1,299,846 |
$1,281,562 |
| 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 |
$405,249 |
$472,665 |
$542,730 |
$615,570 |
$691,316 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$50,542 |
-$48,798 |
-$47,001 |
-$45,150 |
-$43,244 |
| Monhtly Cash Flow |
-$4,212 |
-$4,066 |
-$3,917 |
-$3,763 |
-$3,604 |
| Cash on Cash Return on Investment |
-0.052% |
-0.050% |
-0.049% |
-0.047% |
-0.045% |
| 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 |