Worcester Deal Analysis
Let's look at deal analysis for Worcester, MA 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 Worcester, Massachusetts Rental Property
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Typical 20% Down Payment Worcester, Massachusetts Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$339,450
|
|
Purchase Price
|
|
$339,450
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$67,890
|
|
Closing Costs
|
1.000%
|
$3,395
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$60,058
|
|
Total Invested
|
|
$131,343
|
|
Mortgage
|
|
Mortgage Amount
|
|
$271,560
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$1,995
$1995.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$718
|
|
Property Taxes
|
1.653%
|
$5,611
|
|
Property Insurance
|
0.314%
|
$1,066
|
|
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%
|
$50,918
|
|
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 |
$349,634 |
$360,123 |
$370,926 |
$382,054 |
$393,516 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$10,184 |
$10,489 |
$10,804 |
$11,128 |
$11,462 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,995 |
$2,055 |
$2,116 |
$2,180 |
$2,245 |
| 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 |
$1,995 |
$2,055 |
$2,116 |
$2,180 |
$2,245 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$60 |
$62 |
$63 |
$65 |
$67 |
| Monthly Gross Operating Income |
$1,935 |
$1,993 |
$2,053 |
$2,115 |
$2,178 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$23,940 |
$24,658 |
$25,398 |
$26,160 |
$26,945 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$23,940 |
$24,658 |
$25,398 |
$26,160 |
$26,945 |
| Annual Vacancy Dollar |
$718 |
$740 |
$762 |
$785 |
$808 |
| Annual Gross Operating Income |
$23,222 |
$23,918 |
$24,636 |
$25,375 |
$26,136 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.653% |
1.653% |
1.653% |
1.653% |
1.653% |
| Property Taxes Dollar |
$5,611 |
$5,779 |
$5,953 |
$6,131 |
$6,315 |
| Insurance Percent |
0.314% |
0.314% |
0.314% |
0.314% |
0.314% |
| Insurance Dollar |
$1,066 |
$1,098 |
$1,131 |
$1,165 |
$1,200 |
| 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 |
$2,322 |
$2,392 |
$2,464 |
$2,538 |
$2,614 |
| 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 |
$8,999 |
$9,269 |
$9,547 |
$9,834 |
$10,129 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$14,223 |
$14,649 |
$15,089 |
$15,541 |
$16,008 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$21,680 |
$21,680 |
$21,680 |
$21,680 |
$21,680 |
| Principal |
$2,759 |
$2,958 |
$3,172 |
$3,401 |
$3,647 |
| Interest |
$18,922 |
$18,722 |
$18,509 |
$18,279 |
$18,033 |
| Loan Balance at End of Year |
$268,801 |
$265,843 |
$262,672 |
$259,270 |
$255,623 |
| 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 |
$80,832 |
$94,279 |
$108,255 |
$122,784 |
$137,892 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$7,458 |
-$7,031 |
-$6,592 |
-$6,139 |
-$5,673 |
| Monhtly Cash Flow |
-$621 |
-$586 |
-$549 |
-$512 |
-$473 |
| Cash on Cash Return on Investment |
-0.057% |
-0.054% |
-0.050% |
-0.047% |
-0.043% |
| 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 |