Cambridge Deal Analysis
Let's look at deal analysis for Cambridge, MA 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 Cambridge, Massachusetts Nomad™ Property with 10% Higher Rents
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Typical Cambridge, Massachusetts Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$1,597,239
|
|
Purchase Price
|
|
$1,597,239
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$79,862
|
|
Closing Costs
|
1.000%
|
$15,972
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$1,697,847
|
|
Total Invested
|
|
$1,793,682
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|
Mortgage
|
|
Mortgage Amount
|
|
$1,517,377.05
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$1,074.81
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$4,851
$4851.00
|
|
Other Income
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|
$0
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|
Annual Expenses
|
|
Vacancy Rate
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3.000%
|
$1,746
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Property Taxes
|
0.498%
|
$7,954
|
|
Property Insurance
|
0.314%
|
$5,015
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$239,586
|
|
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 |
$1,645,156 |
$1,694,511 |
$1,745,346 |
$1,797,707 |
$1,851,638 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$47,917 |
$49,355 |
$50,835 |
$52,360 |
$53,931 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$4,851 |
$4,997 |
$5,146 |
$5,301 |
$5,460 |
| 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 |
$4,851 |
$4,997 |
$5,146 |
$5,301 |
$5,460 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$146 |
$150 |
$154 |
$159 |
$164 |
| Monthly Gross Operating Income |
$4,705 |
$4,847 |
$4,992 |
$5,142 |
$5,296 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$58,212 |
$59,958 |
$61,757 |
$63,610 |
$65,518 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$58,212 |
$59,958 |
$61,757 |
$63,610 |
$65,518 |
| Annual Vacancy Dollar |
$1,746 |
$1,799 |
$1,853 |
$1,908 |
$1,966 |
| Annual Gross Operating Income |
$56,466 |
$58,160 |
$59,904 |
$61,702 |
$63,553 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.498% |
0.498% |
0.498% |
0.498% |
0.498% |
| Property Taxes Dollar |
$7,954 |
$8,193 |
$8,439 |
$8,692 |
$8,953 |
| Insurance Percent |
0.314% |
0.314% |
0.314% |
0.314% |
0.314% |
| Insurance Dollar |
$5,015 |
$5,166 |
$5,321 |
$5,480 |
$5,645 |
| 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 |
$5,647 |
$5,816 |
$5,990 |
$6,170 |
$6,355 |
| 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 |
$18,616 |
$19,175 |
$19,750 |
$20,342 |
$20,953 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$37,849 |
$38,985 |
$40,155 |
$41,359 |
$42,600 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$115,090 |
$115,090 |
$115,090 |
$115,090 |
$115,090 |
| Principal |
$16,960 |
$18,096 |
$19,308 |
$20,601 |
$21,981 |
| Interest |
$98,130 |
$96,994 |
$95,782 |
$94,489 |
$93,110 |
| Loan Balance at End of Year |
$1,500,417 |
$1,482,321 |
$1,463,013 |
$1,442,412 |
$1,420,431 |
| 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 |
$12,898 |
$12,898 |
$12,898 |
$12,898 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$144,739 |
$212,190 |
$282,333 |
$355,295 |
$431,207 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$90,139 |
-$89,003 |
-$87,833 |
-$86,629 |
-$72,490 |
| Monhtly Cash Flow |
-$7,512 |
-$7,417 |
-$7,319 |
-$7,219 |
-$6,041 |
| Cash on Cash Return on Investment |
-0.050% |
-0.050% |
-0.049% |
-0.048% |
-0.040% |
| 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 |