Durham Deal Analysis
Let's look at deal analysis for Durham, NC 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 Durham, North Carolina Nomad™ Property with 10% Higher Rents
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Typical Durham, North Carolina Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
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Percents
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Dollars/#
|
|
ARV
|
|
$361,271
|
|
Purchase Price
|
|
$361,271
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$18,064
|
|
Closing Costs
|
1.000%
|
$3,613
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$41,785
|
|
Total Invested
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$63,461
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Mortgage
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|
Mortgage Amount
|
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$343,207.45
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Mortgage Interest Rate
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6.500%
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|
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Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$243.11
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
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|
Monthly Rent
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|
$2,512
$2512.13
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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%
|
$904
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Property Taxes
|
1.259%
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$4,548
|
|
Property Insurance
|
0.484%
|
$1,749
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|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
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|
Other Expenses 2
|
|
$0
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Maintenance
|
10.000%
|
|
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CapEx
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|
$0
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Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$54,191
|
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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 |
$372,109 |
$383,272 |
$394,771 |
$406,614 |
$418,812 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$10,838 |
$11,163 |
$11,498 |
$11,843 |
$12,198 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,512 |
$2,587 |
$2,665 |
$2,745 |
$2,827 |
| 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 |
$2,512 |
$2,587 |
$2,665 |
$2,745 |
$2,827 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$75 |
$78 |
$80 |
$82 |
$85 |
| Monthly Gross Operating Income |
$2,437 |
$2,510 |
$2,585 |
$2,663 |
$2,743 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$30,146 |
$31,050 |
$31,981 |
$32,941 |
$33,929 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$30,146 |
$31,050 |
$31,981 |
$32,941 |
$33,929 |
| Annual Vacancy Dollar |
$904 |
$931 |
$959 |
$988 |
$1,018 |
| Annual Gross Operating Income |
$29,241 |
$30,118 |
$31,022 |
$31,953 |
$32,911 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.259% |
1.259% |
1.259% |
1.259% |
1.259% |
| Property Taxes Dollar |
$4,548 |
$4,685 |
$4,825 |
$4,970 |
$5,119 |
| Insurance Percent |
0.484% |
0.484% |
0.484% |
0.484% |
0.484% |
| Insurance Dollar |
$1,749 |
$1,801 |
$1,855 |
$1,911 |
$1,968 |
| 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 |
$2,924 |
$3,012 |
$3,102 |
$3,195 |
$3,291 |
| 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 |
$9,221 |
$9,498 |
$9,783 |
$10,076 |
$10,378 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$20,020 |
$20,621 |
$21,239 |
$21,877 |
$22,533 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$26,032 |
$26,032 |
$26,032 |
$26,032 |
$26,032 |
| Principal |
$3,836 |
$4,093 |
$4,367 |
$4,660 |
$4,972 |
| Interest |
$22,196 |
$21,939 |
$21,665 |
$21,372 |
$21,060 |
| Loan Balance at End of Year |
$339,371 |
$335,278 |
$330,911 |
$326,252 |
$321,280 |
| 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 |
$2,917 |
$2,917 |
$2,917 |
$2,917 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$32,738 |
$47,994 |
$63,859 |
$80,362 |
$97,532 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$8,929 |
-$8,328 |
-$7,710 |
-$7,072 |
-$3,499 |
| Monhtly Cash Flow |
-$744 |
-$694 |
-$642 |
-$589 |
-$292 |
| Cash on Cash Return on Investment |
-0.141% |
-0.131% |
-0.121% |
-0.111% |
-0.055% |
| 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 |