Austin Deal Analysis
Let's look at deal analysis for Austin, TX 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 Austin, Texas Rental Property
Typical 20% Down Payment Austin, Texas Rental Property
|
Purchase Inputs
|
|
Percents
|
Dollars/#
|
ARV
|
|
$505,268
|
Purchase Price
|
|
$505,268
|
Seller Concessions
|
—
|
$0
|
Down Payment
|
20.000%
|
$101,054
|
Closing Costs
|
1.000%
|
$5,053
|
Rent Ready Costs
|
|
$0
|
Cumulative Negative Cash Flow
|
|
$271,293
|
Total Invested
|
|
$377,399
|
Mortgage
|
Mortgage Amount
|
|
$404,214.40
|
Mortgage Interest Rate
|
7.000%
|
|
Loan Term
|
|
360
|
Private Mortgage Insurance
|
0%
|
$0
|
Drop PMI LTV
|
0.000%
|
|
Income
|
Monthly Rent
|
|
$2,989
$2989.35
|
Other Income
|
|
$0
|
Annual Expenses
|
Vacancy Rate
|
3.000%
|
$1,076
|
Property Taxes
|
1.869%
|
$9,443
|
Property Insurance
|
1.419%
|
$7,170
|
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%
|
$75,790
|
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 |
$520,426 |
$536,039 |
$552,120 |
$568,684 |
$585,744 |
Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
Appreciation Dollar |
$15,158 |
$15,613 |
$16,081 |
$16,564 |
$17,061 |
Monthly Income |
1 |
2 |
3 |
4 |
5 |
Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
Monthly Rent |
$2,989 |
$3,079 |
$3,171 |
$3,267 |
$3,365 |
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 |
$2,989 |
$3,079 |
$3,171 |
$3,267 |
$3,365 |
Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
Monthly Vacancy Dollar |
$90 |
$92 |
$95 |
$98 |
$101 |
Monthly Gross Operating Income |
$2,900 |
$2,987 |
$3,076 |
$3,169 |
$3,264 |
Annual Income |
1 |
2 |
3 |
4 |
5 |
Annual Rent |
$35,872 |
$36,948 |
$38,057 |
$39,199 |
$40,374 |
Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
Annual Gross Potential Income |
$35,872 |
$36,948 |
$38,057 |
$39,199 |
$40,374 |
Annual Vacancy Dollar |
$1,076 |
$1,108 |
$1,142 |
$1,176 |
$1,211 |
Annual Gross Operating Income |
$34,796 |
$35,840 |
$36,915 |
$38,023 |
$39,163 |
Annual Expenses |
1 |
2 |
3 |
4 |
5 |
Property Taxes Percent |
1.869% |
1.869% |
1.869% |
1.869% |
1.869% |
Property Taxes Dollar |
$9,443 |
$9,727 |
$10,019 |
$10,319 |
$10,629 |
Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
Insurance Dollar |
$7,170 |
$7,385 |
$7,606 |
$7,835 |
$8,070 |
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 |
$3,480 |
$3,584 |
$3,692 |
$3,802 |
$3,916 |
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 |
$20,093 |
$20,696 |
$21,316 |
$21,956 |
$22,615 |
Net Operating Income |
1 |
2 |
3 |
4 |
5 |
Net Operating Income (NOI) |
$14,703 |
$15,144 |
$15,599 |
$16,067 |
$16,549 |
Mortgage |
1 |
2 |
3 |
4 |
5 |
Total Annual P&I Payments |
$32,271 |
$32,271 |
$32,271 |
$32,271 |
$32,271 |
Principal |
$4,106 |
$4,403 |
$4,721 |
$5,062 |
$5,428 |
Interest |
$28,165 |
$27,868 |
$27,550 |
$27,209 |
$26,843 |
Loan Balance at End of Year |
$400,108 |
$395,705 |
$390,984 |
$385,922 |
$380,493 |
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 |
$120,318 |
$140,333 |
$161,136 |
$182,762 |
$205,251 |
Cash Flow |
1 |
2 |
3 |
4 |
5 |
Annual Cash Flow |
-$17,568 |
-$17,127 |
-$16,672 |
-$16,204 |
-$15,722 |
Monhtly Cash Flow |
-$1,464 |
-$1,427 |
-$1,389 |
-$1,350 |
-$1,310 |
Cash on Cash Return on Investment |
-0.047% |
-0.045% |
-0.044% |
-0.043% |
-0.042% |
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 |