Detroit Deal Analysis
Let's look at deal analysis for Detroit, MI 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 Detroit, Michigan Rental Property
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Typical 20% Down Payment Detroit, Michigan Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$57,353
|
|
Purchase Price
|
|
$57,353
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$11,471
|
|
Closing Costs
|
1.000%
|
$574
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$12,044
|
|
Mortgage
|
|
Mortgage Amount
|
|
$45,882.40
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,835
$2835.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,021
|
|
Property Taxes
|
3.659%
|
$2,099
|
|
Property Insurance
|
0.880%
|
$505
|
|
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%
|
$8,603
|
|
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 |
$59,074 |
$60,846 |
$62,671 |
$64,551 |
$66,488 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$1,721 |
$1,772 |
$1,825 |
$1,880 |
$1,937 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,835 |
$2,920 |
$3,008 |
$3,098 |
$3,191 |
| 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 |
$2,835 |
$2,920 |
$3,008 |
$3,098 |
$3,191 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$85 |
$88 |
$90 |
$93 |
$96 |
| Monthly Gross Operating Income |
$2,750 |
$2,832 |
$2,917 |
$3,005 |
$3,095 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$34,020 |
$35,041 |
$36,092 |
$37,175 |
$38,290 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$34,020 |
$35,041 |
$36,092 |
$37,175 |
$38,290 |
| Annual Vacancy Dollar |
$1,021 |
$1,051 |
$1,083 |
$1,115 |
$1,149 |
| Annual Gross Operating Income |
$32,999 |
$33,989 |
$35,009 |
$36,059 |
$37,141 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
3.659% |
3.659% |
3.659% |
3.659% |
3.659% |
| Property Taxes Dollar |
$2,099 |
$2,162 |
$2,226 |
$2,293 |
$2,362 |
| Insurance Percent |
0.880% |
0.880% |
0.880% |
0.880% |
0.880% |
| Insurance Dollar |
$505 |
$520 |
$535 |
$552 |
$568 |
| 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 |
$3,300 |
$3,399 |
$3,501 |
$3,606 |
$3,714 |
| 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 |
$5,903 |
$6,080 |
$6,263 |
$6,451 |
$6,644 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$27,096 |
$27,909 |
$28,746 |
$29,609 |
$30,497 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$3,663 |
$3,663 |
$3,663 |
$3,663 |
$3,663 |
| Principal |
$466 |
$500 |
$536 |
$575 |
$616 |
| Interest |
$3,197 |
$3,163 |
$3,127 |
$3,088 |
$3,047 |
| Loan Balance at End of Year |
$45,416 |
$44,916 |
$44,381 |
$43,806 |
$43,190 |
| 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 |
$13,657 |
$15,929 |
$18,291 |
$20,745 |
$23,298 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$23,433 |
$24,246 |
$25,083 |
$25,946 |
$26,834 |
| Monhtly Cash Flow |
$1,953 |
$2,020 |
$2,090 |
$2,162 |
$2,236 |
| Cash on Cash Return on Investment |
1.946% |
2.013% |
2.083% |
2.154% |
2.228% |
| 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 |