Paterson Deal Analysis
Let's look at deal analysis for Paterson, NJ 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 Paterson, New Jersey Rental Property
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Typical 20% Down Payment Paterson, New Jersey Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$372,401
|
|
Purchase Price
|
|
$372,401
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$74,480
|
|
Closing Costs
|
1.000%
|
$3,724
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$242,832
|
|
Total Invested
|
|
$321,036
|
|
Mortgage
|
|
Mortgage Amount
|
|
$297,920.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,310
$2310.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$832
|
|
Property Taxes
|
3.653%
|
$13,604
|
|
Property Insurance
|
0.195%
|
$726
|
|
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%
|
$55,860
|
|
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 |
$383,573 |
$395,080 |
$406,933 |
$419,141 |
$431,715 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,172 |
$11,507 |
$11,852 |
$12,208 |
$12,574 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| 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 |
$2,310 |
$2,379 |
$2,451 |
$2,524 |
$2,600 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$69 |
$71 |
$74 |
$76 |
$78 |
| Monthly Gross Operating Income |
$2,241 |
$2,308 |
$2,377 |
$2,448 |
$2,522 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$27,720 |
$28,552 |
$29,408 |
$30,290 |
$31,199 |
| Annual Vacancy Dollar |
$832 |
$857 |
$882 |
$909 |
$936 |
| Annual Gross Operating Income |
$26,888 |
$27,695 |
$28,526 |
$29,382 |
$30,263 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
3.653% |
3.653% |
3.653% |
3.653% |
3.653% |
| Property Taxes Dollar |
$13,604 |
$14,012 |
$14,432 |
$14,865 |
$15,311 |
| Insurance Percent |
0.195% |
0.195% |
0.195% |
0.195% |
0.195% |
| Insurance Dollar |
$726 |
$748 |
$770 |
$794 |
$817 |
| 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 |
$2,689 |
$2,770 |
$2,853 |
$2,938 |
$3,026 |
| 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 |
$17,019 |
$17,529 |
$18,055 |
$18,597 |
$19,155 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$9,870 |
$10,166 |
$10,471 |
$10,785 |
$11,108 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$23,785 |
$23,785 |
$23,785 |
$23,785 |
$23,785 |
| Principal |
$3,026 |
$3,245 |
$3,480 |
$3,731 |
$4,001 |
| Interest |
$20,759 |
$20,540 |
$20,305 |
$20,054 |
$19,784 |
| Loan Balance at End of Year |
$294,895 |
$291,650 |
$288,170 |
$284,439 |
$280,438 |
| 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 |
$88,678 |
$103,431 |
$118,763 |
$134,702 |
$151,277 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$13,915 |
-$13,619 |
-$13,314 |
-$13,000 |
-$12,677 |
| Monhtly Cash Flow |
-$1,160 |
-$1,135 |
-$1,110 |
-$1,083 |
-$1,056 |
| Cash on Cash Return on Investment |
-0.043% |
-0.042% |
-0.041% |
-0.040% |
-0.039% |
| 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 |