Houston Deal Analysis
Let's look at deal analysis for Houston, TX 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 Houston, Texas Nomad™ Property with 10% Higher Rents
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Typical Houston, Texas Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$235,354
|
|
Purchase Price
|
|
$235,354
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$11,768
|
|
Closing Costs
|
1.000%
|
$2,354
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$14,121
|
|
Mortgage
|
|
Mortgage Amount
|
|
$223,586.30
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$158.37
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,696
$3696.00
|
|
Other Income
|
|
$0
|
|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$1,331
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|
Property Taxes
|
2.247%
|
$5,288
|
|
Property Insurance
|
1.419%
|
$3,340
|
|
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%
|
$35,303
|
|
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 |
$242,415 |
$249,687 |
$257,178 |
$264,893 |
$272,840 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$7,061 |
$7,272 |
$7,491 |
$7,715 |
$7,947 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,696 |
$3,807 |
$3,921 |
$4,039 |
$4,160 |
| 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 |
$3,696 |
$3,807 |
$3,921 |
$4,039 |
$4,160 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$111 |
$114 |
$118 |
$121 |
$125 |
| Monthly Gross Operating Income |
$3,585 |
$3,693 |
$3,803 |
$3,918 |
$4,035 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$44,352 |
$45,683 |
$47,053 |
$48,465 |
$49,919 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$44,352 |
$45,683 |
$47,053 |
$48,465 |
$49,919 |
| Annual Vacancy Dollar |
$1,331 |
$1,370 |
$1,412 |
$1,454 |
$1,498 |
| Annual Gross Operating Income |
$43,021 |
$44,312 |
$45,641 |
$47,011 |
$48,421 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.247% |
2.247% |
2.247% |
2.247% |
2.247% |
| Property Taxes Dollar |
$5,288 |
$5,447 |
$5,610 |
$5,779 |
$5,952 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$3,340 |
$3,440 |
$3,543 |
$3,649 |
$3,759 |
| 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 |
$4,302 |
$4,431 |
$4,564 |
$4,701 |
$4,842 |
| 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 |
$12,930 |
$13,318 |
$13,718 |
$14,129 |
$14,553 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$30,091 |
$30,994 |
$31,924 |
$32,881 |
$33,868 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$16,959 |
$16,959 |
$16,959 |
$16,959 |
$16,959 |
| Principal |
$2,499 |
$2,666 |
$2,845 |
$3,036 |
$3,239 |
| Interest |
$14,460 |
$14,292 |
$14,114 |
$13,923 |
$13,720 |
| Loan Balance at End of Year |
$221,087 |
$218,421 |
$215,576 |
$212,540 |
$209,301 |
| 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 |
$1,900 |
$1,900 |
$1,900 |
$1,900 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$21,327 |
$31,266 |
$41,602 |
$52,353 |
$63,539 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$11,232 |
$12,135 |
$13,065 |
$14,022 |
$16,909 |
| Monhtly Cash Flow |
$936 |
$1,011 |
$1,089 |
$1,169 |
$1,409 |
| Cash on Cash Return on Investment |
0.795% |
0.859% |
0.925% |
0.993% |
1.197% |
| 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 |