Warren Deal Analysis
Let's look at deal analysis for Warren, 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 Warren, Michigan Rental Property
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Typical 20% Down Payment Warren, Michigan Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$166,086
|
|
Purchase Price
|
|
$166,086
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$33,217
|
|
Closing Costs
|
1.000%
|
$1,661
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$4,561
|
|
Total Invested
|
|
$39,439
|
|
Mortgage
|
|
Mortgage Amount
|
|
$132,868.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$1,364
$1363.95
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$491
|
|
Property Taxes
|
2.235%
|
$3,712
|
|
Property Insurance
|
0.880%
|
$1,462
|
|
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%
|
$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 |
$1,364 |
$1,405 |
$1,447 |
$1,490 |
$1,535 |
| 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 |
$1,364 |
$1,405 |
$1,447 |
$1,490 |
$1,535 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$41 |
$42 |
$43 |
$45 |
$46 |
| Monthly Gross Operating Income |
$1,323 |
$1,363 |
$1,404 |
$1,446 |
$1,489 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$16,367 |
$16,858 |
$17,364 |
$17,885 |
$18,422 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$16,367 |
$16,858 |
$17,364 |
$17,885 |
$18,422 |
| Annual Vacancy Dollar |
$491 |
$506 |
$521 |
$537 |
$553 |
| Annual Gross Operating Income |
$15,876 |
$16,353 |
$16,843 |
$17,349 |
$17,869 |
| 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 |
$1,588 |
$1,635 |
$1,684 |
$1,735 |
$1,787 |
| 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 |
$6,761 |
$6,964 |
$7,173 |
$7,388 |
$7,610 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$9,115 |
$9,389 |
$9,670 |
$9,960 |
$10,259 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$10,608 |
$10,608 |
$10,608 |
$10,608 |
$10,608 |
| Principal |
$1,350 |
$1,447 |
$1,552 |
$1,664 |
$1,784 |
| Interest |
$9,258 |
$9,160 |
$9,056 |
$8,944 |
$8,823 |
| Loan Balance at End of Year |
$131,519 |
$130,072 |
$128,520 |
$126,856 |
$125,071 |
| 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 |
$39,549 |
$46,129 |
$52,967 |
$60,075 |
$67,468 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$1,493 |
-$1,219 |
-$937 |
-$647 |
-$349 |
| Monhtly Cash Flow |
-$124 |
-$102 |
-$78 |
-$54 |
-$29 |
| Cash on Cash Return on Investment |
-0.038% |
-0.031% |
-0.024% |
-0.016% |
-0.009% |
| 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 |