Torrance Deal Analysis
Let's look at deal analysis for Torrance, 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 Torrance, California Rental Property
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Typical 20% Down Payment Torrance, California Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,062,103
|
|
Purchase Price
|
|
$1,062,103
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$212,421
|
|
Closing Costs
|
1.000%
|
$10,621
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$298,802
|
|
Total Invested
|
|
$521,844
|
|
Mortgage
|
|
Mortgage Amount
|
|
$849,682.40
|
|
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
|
0.785%
|
$8,338
|
|
Property Insurance
|
0.173%
|
$1,837
|
|
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%
|
$159,315
|
|
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 |
$1,093,966 |
$1,126,785 |
$1,160,589 |
$1,195,406 |
$1,231,268 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$31,863 |
$32,819 |
$33,804 |
$34,818 |
$35,862 |
| 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 |
0.785% |
0.785% |
0.785% |
0.785% |
0.785% |
| Property Taxes Dollar |
$8,338 |
$8,588 |
$8,845 |
$9,111 |
$9,384 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$1,837 |
$1,893 |
$1,949 |
$2,008 |
$2,068 |
| 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 |
$15,675 |
$16,145 |
$16,629 |
$17,128 |
$17,642 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$39,324 |
$40,504 |
$41,719 |
$42,971 |
$44,260 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$67,836 |
$67,836 |
$67,836 |
$67,836 |
$67,836 |
| Principal |
$8,631 |
$9,255 |
$9,924 |
$10,642 |
$11,411 |
| Interest |
$59,204 |
$58,580 |
$57,911 |
$57,194 |
$56,425 |
| Loan Balance at End of Year |
$841,051 |
$831,796 |
$821,872 |
$811,230 |
$799,819 |
| 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 |
$252,915 |
$294,989 |
$338,717 |
$384,176 |
$431,449 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$28,511 |
-$27,332 |
-$26,117 |
-$24,865 |
-$23,576 |
| Monhtly Cash Flow |
-$2,376 |
-$2,278 |
-$2,176 |
-$2,072 |
-$1,965 |
| Cash on Cash Return on Investment |
-0.055% |
-0.052% |
-0.050% |
-0.048% |
-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 |