Durham Deal Analysis
Let's look at deal analysis for Durham, NC 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 Durham, North Carolina Rental Property
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Typical 20% Down Payment Durham, North Carolina Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$361,271
|
|
Purchase Price
|
|
$361,271
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$72,254
|
|
Closing Costs
|
1.000%
|
$3,613
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$28,206
|
|
Total Invested
|
|
$104,073
|
|
Mortgage
|
|
Mortgage Amount
|
|
$289,016.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,284
$2283.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$822
|
|
Property Taxes
|
1.259%
|
$4,548
|
|
Property Insurance
|
0.484%
|
$1,749
|
|
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%
|
$54,191
|
|
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 |
$2,284 |
$2,352 |
$2,423 |
$2,496 |
$2,570 |
| 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 |
$2,284 |
$2,352 |
$2,423 |
$2,496 |
$2,570 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$69 |
$71 |
$73 |
$75 |
$77 |
| Monthly Gross Operating Income |
$2,215 |
$2,282 |
$2,350 |
$2,421 |
$2,493 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$27,405 |
$28,227 |
$29,074 |
$29,946 |
$30,845 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$27,405 |
$28,227 |
$29,074 |
$29,946 |
$30,845 |
| Annual Vacancy Dollar |
$822 |
$847 |
$872 |
$898 |
$925 |
| Annual Gross Operating Income |
$26,583 |
$27,380 |
$28,202 |
$29,048 |
$29,919 |
| 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 |
$2,658 |
$2,738 |
$2,820 |
$2,905 |
$2,992 |
| 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 |
$8,955 |
$9,224 |
$9,501 |
$9,786 |
$10,079 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$17,628 |
$18,156 |
$18,701 |
$19,262 |
$19,840 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$23,074 |
$23,074 |
$23,074 |
$23,074 |
$23,074 |
| Principal |
$2,936 |
$3,148 |
$3,376 |
$3,620 |
$3,881 |
| Interest |
$20,138 |
$19,926 |
$19,698 |
$19,454 |
$19,193 |
| Loan Balance at End of Year |
$286,081 |
$282,933 |
$279,557 |
$275,937 |
$272,056 |
| 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 |
$86,028 |
$100,340 |
$115,214 |
$130,676 |
$146,756 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$5,446 |
-$4,918 |
-$4,373 |
-$3,812 |
-$3,234 |
| Monhtly Cash Flow |
-$454 |
-$410 |
-$364 |
-$318 |
-$270 |
| Cash on Cash Return on Investment |
-0.052% |
-0.047% |
-0.042% |
-0.037% |
-0.031% |
| 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 |