Warren Deal Analysis
Let's look at deal analysis for Warren, MI 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 Warren, Michigan Nomad™ Property with 10% Higher Rents
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Typical Warren, Michigan Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$166,086
|
|
Purchase Price
|
|
$166,086
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$8,304
|
|
Closing Costs
|
1.000%
|
$1,661
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$8,974
|
|
Total Invested
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|
$18,939
|
|
Mortgage
|
|
Mortgage Amount
|
|
$157,781.70
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Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$111.76
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
|
|
$1,500
$1500.35
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Other Income
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|
$0
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|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$540
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Property Taxes
|
2.235%
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$3,712
|
|
Property Insurance
|
0.880%
|
$1,462
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
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Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
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Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$24,913
|
|
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 |
$171,069 |
$176,201 |
$181,487 |
$186,931 |
$192,539 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$4,983 |
$5,132 |
$5,286 |
$5,445 |
$5,608 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,500 |
$1,545 |
$1,592 |
$1,639 |
$1,689 |
| 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 |
$1,500 |
$1,545 |
$1,592 |
$1,639 |
$1,689 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$45 |
$46 |
$48 |
$49 |
$51 |
| Monthly Gross Operating Income |
$1,455 |
$1,499 |
$1,544 |
$1,590 |
$1,638 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$18,004 |
$18,544 |
$19,101 |
$19,674 |
$20,264 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$18,004 |
$18,544 |
$19,101 |
$19,674 |
$20,264 |
| Annual Vacancy Dollar |
$540 |
$556 |
$573 |
$590 |
$608 |
| Annual Gross Operating Income |
$17,464 |
$17,988 |
$18,528 |
$19,083 |
$19,656 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.235% |
2.235% |
2.235% |
2.235% |
2.235% |
| Property Taxes Dollar |
$3,712 |
$3,823 |
$3,938 |
$4,056 |
$4,178 |
| Insurance Percent |
0.880% |
0.880% |
0.880% |
0.880% |
0.880% |
| Insurance Dollar |
$1,462 |
$1,505 |
$1,551 |
$1,597 |
$1,645 |
| 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 |
$1,746 |
$1,799 |
$1,853 |
$1,908 |
$1,966 |
| 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 |
$6,920 |
$7,128 |
$7,341 |
$7,562 |
$7,789 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$10,544 |
$10,860 |
$11,186 |
$11,522 |
$11,867 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$11,967 |
$11,967 |
$11,967 |
$11,967 |
$11,967 |
| Principal |
$1,764 |
$1,882 |
$2,008 |
$2,142 |
$2,286 |
| Interest |
$10,204 |
$10,086 |
$9,960 |
$9,825 |
$9,682 |
| Loan Balance at End of Year |
$156,018 |
$154,136 |
$152,129 |
$149,986 |
$147,701 |
| 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 |
$1,341 |
$1,341 |
$1,341 |
$1,341 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$15,050 |
$22,064 |
$29,358 |
$36,945 |
$44,838 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$2,765 |
-$2,448 |
-$2,122 |
-$1,787 |
-$100 |
| Monhtly Cash Flow |
-$230 |
-$204 |
-$177 |
-$149 |
-$8 |
| Cash on Cash Return on Investment |
-0.146% |
-0.129% |
-0.112% |
-0.094% |
-0.005% |
| 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 |