Chattanooga Deal Analysis
Let's look at deal analysis for Chattanooga, TN 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 Chattanooga, Tennessee Rental Property
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Typical 20% Down Payment Chattanooga, Tennessee Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$233,982
|
|
Purchase Price
|
|
$233,982
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$46,796
|
|
Closing Costs
|
1.000%
|
$2,340
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$49,136
|
|
Mortgage
|
|
Mortgage Amount
|
|
$187,185.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,363
$2362.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$851
|
|
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 |
$2,363 |
$2,433 |
$2,506 |
$2,582 |
$2,659 |
| 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 |
$2,363 |
$2,433 |
$2,506 |
$2,582 |
$2,659 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$71 |
$73 |
$75 |
$77 |
$80 |
| Monthly Gross Operating Income |
$2,292 |
$2,360 |
$2,431 |
$2,504 |
$2,579 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$28,350 |
$29,201 |
$30,077 |
$30,979 |
$31,908 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$28,350 |
$29,201 |
$30,077 |
$30,979 |
$31,908 |
| Annual Vacancy Dollar |
$851 |
$876 |
$902 |
$929 |
$957 |
| Annual Gross Operating Income |
$27,500 |
$28,324 |
$29,174 |
$30,049 |
$30,951 |
| 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 |
$2,750 |
$2,832 |
$2,917 |
$3,005 |
$3,095 |
| 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 |
$8,071 |
$8,313 |
$8,562 |
$8,819 |
$9,084 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$19,429 |
$20,012 |
$20,612 |
$21,230 |
$21,867 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$14,944 |
$14,944 |
$14,944 |
$14,944 |
$14,944 |
| Principal |
$1,901 |
$2,039 |
$2,186 |
$2,344 |
$2,514 |
| Interest |
$13,043 |
$12,905 |
$12,758 |
$12,600 |
$12,430 |
| Loan Balance at End of Year |
$185,284 |
$183,245 |
$181,059 |
$178,715 |
$176,201 |
| 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 |
$55,717 |
$64,986 |
$74,619 |
$84,634 |
$95,048 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$4,485 |
$5,067 |
$5,668 |
$6,286 |
$6,923 |
| Monhtly Cash Flow |
$374 |
$422 |
$472 |
$524 |
$577 |
| Cash on Cash Return on Investment |
0.091% |
0.103% |
0.115% |
0.128% |
0.141% |
| 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 |