Chattanooga Deal Analysis
Let's look at deal analysis for Chattanooga, TN 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 Chattanooga, Tennessee Nomad™ Property with 10% Higher Rents
|
Typical Chattanooga, Tennessee Nomad™ Property with 10% Higher Rents
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$233,982
|
|
Purchase Price
|
|
$233,982
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$11,699
|
|
Closing Costs
|
1.000%
|
$2,340
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$14,039
|
|
Mortgage
|
|
Mortgage Amount
|
|
$222,282.90
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$157.45
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,599
$2598.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$936
|
|
Property Taxes
|
1.143%
|
$2,674
|
|
Property Insurance
|
1.131%
|
$2,646
|
|
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%
|
$35,097
|
|
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 |
$241,001 |
$248,232 |
$255,678 |
$263,349 |
$271,249 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,019 |
$7,230 |
$7,447 |
$7,670 |
$7,900 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,599 |
$2,677 |
$2,757 |
$2,840 |
$2,925 |
| 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 |
$2,599 |
$2,677 |
$2,757 |
$2,840 |
$2,925 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$78 |
$80 |
$83 |
$85 |
$88 |
| Monthly Gross Operating Income |
$2,521 |
$2,596 |
$2,674 |
$2,755 |
$2,837 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$31,185 |
$32,121 |
$33,084 |
$34,077 |
$35,099 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$31,185 |
$32,121 |
$33,084 |
$34,077 |
$35,099 |
| Annual Vacancy Dollar |
$936 |
$964 |
$993 |
$1,022 |
$1,053 |
| Annual Gross Operating Income |
$30,249 |
$31,157 |
$32,092 |
$33,054 |
$34,046 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.143% |
1.143% |
1.143% |
1.143% |
1.143% |
| Property Taxes Dollar |
$2,674 |
$2,755 |
$2,837 |
$2,922 |
$3,010 |
| Insurance Percent |
1.131% |
1.131% |
1.131% |
1.131% |
1.131% |
| Insurance Dollar |
$2,646 |
$2,726 |
$2,807 |
$2,892 |
$2,978 |
| 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 |
$3,025 |
$3,116 |
$3,209 |
$3,305 |
$3,405 |
| 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 |
$8,346 |
$8,596 |
$8,854 |
$9,120 |
$9,393 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$21,904 |
$22,561 |
$23,238 |
$23,935 |
$24,653 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$16,860 |
$16,860 |
$16,860 |
$16,860 |
$16,860 |
| Principal |
$2,485 |
$2,651 |
$2,828 |
$3,018 |
$3,220 |
| Interest |
$14,375 |
$14,209 |
$14,031 |
$13,842 |
$13,640 |
| Loan Balance at End of Year |
$219,798 |
$217,147 |
$214,319 |
$211,301 |
$208,081 |
| 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 |
$1,889 |
$1,889 |
$1,889 |
$1,889 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$21,203 |
$31,084 |
$41,359 |
$52,048 |
$63,168 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$3,155 |
$3,812 |
$4,489 |
$5,186 |
$7,793 |
| Monhtly Cash Flow |
$263 |
$318 |
$374 |
$432 |
$649 |
| Cash on Cash Return on Investment |
0.225% |
0.272% |
0.320% |
0.369% |
0.555% |
| 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 |