Salem Deal Analysis
Let's look at deal analysis for Salem, OR 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 Salem, Oregon Nomad™ Property with 10% Higher Rents
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Typical Salem, Oregon Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$383,741
|
|
Purchase Price
|
|
$383,741
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$19,187
|
|
Closing Costs
|
1.000%
|
$3,837
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$32,223
|
|
Total Invested
|
|
$55,247
|
|
Mortgage
|
|
Mortgage Amount
|
|
$364,553.95
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$258.23
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,766
$2766.23
|
|
Other Income
|
|
$0
|
|
Annual Expenses
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|
Vacancy Rate
|
3.000%
|
$996
|
|
Property Taxes
|
1.385%
|
$5,315
|
|
Property Insurance
|
0.283%
|
$1,086
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$57,561
|
|
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 |
$395,253 |
$407,111 |
$419,324 |
$431,904 |
$444,861 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,512 |
$11,858 |
$12,213 |
$12,580 |
$12,957 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,766 |
$2,849 |
$2,935 |
$3,023 |
$3,113 |
| 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 |
$2,766 |
$2,849 |
$2,935 |
$3,023 |
$3,113 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$83 |
$85 |
$88 |
$91 |
$93 |
| Monthly Gross Operating Income |
$2,683 |
$2,764 |
$2,847 |
$2,932 |
$3,020 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$33,195 |
$34,191 |
$35,216 |
$36,273 |
$37,361 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$33,195 |
$34,191 |
$35,216 |
$36,273 |
$37,361 |
| Annual Vacancy Dollar |
$996 |
$1,026 |
$1,056 |
$1,088 |
$1,121 |
| Annual Gross Operating Income |
$32,199 |
$33,165 |
$34,160 |
$35,185 |
$36,240 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.385% |
1.385% |
1.385% |
1.385% |
1.385% |
| Property Taxes Dollar |
$5,315 |
$5,474 |
$5,638 |
$5,808 |
$5,982 |
| Insurance Percent |
0.283% |
0.283% |
0.283% |
0.283% |
0.283% |
| Insurance Dollar |
$1,086 |
$1,119 |
$1,152 |
$1,187 |
$1,222 |
| 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 |
$3,220 |
$3,316 |
$3,416 |
$3,518 |
$3,624 |
| 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 |
$9,621 |
$9,909 |
$10,207 |
$10,513 |
$10,828 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$22,578 |
$23,256 |
$23,953 |
$24,672 |
$25,412 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$27,651 |
$27,651 |
$27,651 |
$27,651 |
$27,651 |
| Principal |
$4,075 |
$4,348 |
$4,639 |
$4,949 |
$5,281 |
| Interest |
$23,576 |
$23,303 |
$23,012 |
$22,701 |
$22,370 |
| Loan Balance at End of Year |
$360,479 |
$356,132 |
$351,493 |
$346,543 |
$341,262 |
| 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 |
$3,099 |
$3,099 |
$3,099 |
$3,099 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$34,774 |
$50,979 |
$67,831 |
$85,361 |
$103,599 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$8,171 |
-$7,494 |
-$6,796 |
-$6,078 |
-$2,239 |
| Monhtly Cash Flow |
-$681 |
-$624 |
-$566 |
-$506 |
-$187 |
| Cash on Cash Return on Investment |
-0.148% |
-0.136% |
-0.123% |
-0.110% |
-0.041% |
| 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 |