Denver Deal Analysis
Let's look at deal analysis for Denver, CO 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 Denver, Colorado Rental Property
|
Typical 20% Down Payment Denver, Colorado Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$607,300
|
|
Purchase Price
|
|
$607,300
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$121,460
|
|
Closing Costs
|
1.000%
|
$6,073
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$67,833
|
|
Total Invested
|
|
$195,366
|
|
Mortgage
|
|
Mortgage Amount
|
|
$485,840
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,255
$3255.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,172
|
|
Property Taxes
|
0.504%
|
$3,061
|
|
Property Insurance
|
0.508%
|
$3,085
|
|
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%
|
$91,095
|
|
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 |
$625,519 |
$644,285 |
$663,613 |
$683,522 |
$704,027 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$18,219 |
$18,766 |
$19,329 |
$19,908 |
$20,506 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,255 |
$3,353 |
$3,453 |
$3,557 |
$3,664 |
| 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 |
$3,255 |
$3,353 |
$3,453 |
$3,557 |
$3,664 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$98 |
$101 |
$104 |
$107 |
$110 |
| Monthly Gross Operating Income |
$3,157 |
$3,252 |
$3,350 |
$3,450 |
$3,554 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$39,060 |
$40,232 |
$41,439 |
$42,682 |
$43,962 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$39,060 |
$40,232 |
$41,439 |
$42,682 |
$43,962 |
| Annual Vacancy Dollar |
$1,172 |
$1,207 |
$1,243 |
$1,280 |
$1,319 |
| Annual Gross Operating Income |
$37,888 |
$39,025 |
$40,196 |
$41,401 |
$42,644 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.504% |
0.504% |
0.504% |
0.504% |
0.504% |
| Property Taxes Dollar |
$3,061 |
$3,153 |
$3,247 |
$3,345 |
$3,445 |
| Insurance Percent |
0.508% |
0.508% |
0.508% |
0.508% |
0.508% |
| Insurance Dollar |
$3,085 |
$3,178 |
$3,273 |
$3,371 |
$3,472 |
| 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 |
$3,789 |
$3,902 |
$4,020 |
$4,140 |
$4,264 |
| 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 |
$9,935 |
$10,233 |
$10,540 |
$10,856 |
$11,182 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$27,954 |
$28,792 |
$29,656 |
$30,546 |
$31,462 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$38,788 |
$38,788 |
$38,788 |
$38,788 |
$38,788 |
| Principal |
$4,935 |
$5,292 |
$5,675 |
$6,085 |
$6,525 |
| Interest |
$33,852 |
$33,496 |
$33,113 |
$32,703 |
$32,263 |
| Loan Balance at End of Year |
$480,905 |
$475,613 |
$469,938 |
$463,853 |
$457,329 |
| 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 |
$144,614 |
$168,672 |
$193,675 |
$219,668 |
$246,699 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$10,834 |
-$9,996 |
-$9,132 |
-$8,242 |
-$7,326 |
| Monhtly Cash Flow |
-$903 |
-$833 |
-$761 |
-$687 |
-$610 |
| Cash on Cash Return on Investment |
-0.055% |
-0.051% |
-0.047% |
-0.042% |
-0.037% |
| 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 |