Newark Deal Analysis
Let's look at deal analysis for Newark, NJ 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 Newark, New Jersey Nomad™ Property with 10% Higher Rents
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Typical Newark, New Jersey 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
|
|
$369,491
|
|
Purchase Price
|
|
$369,491
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$18,475
|
|
Closing Costs
|
1.000%
|
$3,695
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$121,583
|
|
Total Invested
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$143,753
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Mortgage
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|
Mortgage Amount
|
|
$351,016.45
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Mortgage Interest Rate
|
6.500%
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|
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Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$248.64
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
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|
Monthly Rent
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|
$2,481
$2480.94
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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%
|
$893
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Property Taxes
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2.581%
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$9,537
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|
Property Insurance
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0.195%
|
$721
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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%
|
$55,424
|
|
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 |
$380,576 |
$391,993 |
$403,753 |
$415,865 |
$428,341 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,085 |
$11,417 |
$11,760 |
$12,113 |
$12,476 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,481 |
$2,555 |
$2,632 |
$2,711 |
$2,792 |
| 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 |
$2,481 |
$2,555 |
$2,632 |
$2,711 |
$2,792 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$74 |
$77 |
$79 |
$81 |
$84 |
| Monthly Gross Operating Income |
$2,407 |
$2,479 |
$2,553 |
$2,630 |
$2,709 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$29,771 |
$30,664 |
$31,584 |
$32,532 |
$33,508 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$29,771 |
$30,664 |
$31,584 |
$32,532 |
$33,508 |
| Annual Vacancy Dollar |
$893 |
$920 |
$948 |
$976 |
$1,005 |
| Annual Gross Operating Income |
$28,878 |
$29,744 |
$30,637 |
$31,556 |
$32,503 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.581% |
2.581% |
2.581% |
2.581% |
2.581% |
| Property Taxes Dollar |
$9,537 |
$9,823 |
$10,117 |
$10,421 |
$10,733 |
| Insurance Percent |
0.195% |
0.195% |
0.195% |
0.195% |
0.195% |
| Insurance Dollar |
$721 |
$742 |
$764 |
$787 |
$811 |
| 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 |
$2,888 |
$2,974 |
$3,064 |
$3,156 |
$3,250 |
| 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 |
$13,145 |
$13,539 |
$13,945 |
$14,364 |
$14,795 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,733 |
$16,205 |
$16,691 |
$17,192 |
$17,708 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$26,624 |
$26,624 |
$26,624 |
$26,624 |
$26,624 |
| Principal |
$3,923 |
$4,186 |
$4,466 |
$4,766 |
$5,085 |
| Interest |
$22,701 |
$22,438 |
$22,157 |
$21,858 |
$21,539 |
| Loan Balance at End of Year |
$347,093 |
$342,907 |
$338,440 |
$333,675 |
$328,590 |
| 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 |
$2,984 |
$2,984 |
$2,984 |
$2,984 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$33,483 |
$49,086 |
$65,312 |
$82,190 |
$99,751 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$13,874 |
-$13,402 |
-$12,916 |
-$12,415 |
-$8,916 |
| Monhtly Cash Flow |
-$1,156 |
-$1,117 |
-$1,076 |
-$1,035 |
-$743 |
| Cash on Cash Return on Investment |
-0.097% |
-0.093% |
-0.090% |
-0.086% |
-0.062% |
| 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 |