McKinney Deal Analysis
Let's look at deal analysis for McKinney, 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 McKinney, Texas Rental Property
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Typical 20% Down Payment McKinney, Texas Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$451,172
|
|
Purchase Price
|
|
$451,172
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$90,234
|
|
Closing Costs
|
1.000%
|
$4,512
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$163,925
|
|
Total Invested
|
|
$258,671
|
|
Mortgage
|
|
Mortgage Amount
|
|
$360,937.60
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,993
$2992.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,077
|
|
Property Taxes
|
2.126%
|
$9,592
|
|
Property Insurance
|
1.419%
|
$6,402
|
|
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%
|
$67,676
|
|
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 |
$464,707 |
$478,648 |
$493,008 |
$507,798 |
$523,032 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$13,535 |
$13,941 |
$14,359 |
$14,790 |
$15,234 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,993 |
$3,082 |
$3,175 |
$3,270 |
$3,368 |
| 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 |
$2,993 |
$3,082 |
$3,175 |
$3,270 |
$3,368 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$90 |
$92 |
$95 |
$98 |
$101 |
| Monthly Gross Operating Income |
$2,903 |
$2,990 |
$3,080 |
$3,172 |
$3,267 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$35,910 |
$36,987 |
$38,097 |
$39,240 |
$40,417 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$35,910 |
$36,987 |
$38,097 |
$39,240 |
$40,417 |
| Annual Vacancy Dollar |
$1,077 |
$1,110 |
$1,143 |
$1,177 |
$1,213 |
| Annual Gross Operating Income |
$34,833 |
$35,878 |
$36,954 |
$38,063 |
$39,205 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.126% |
2.126% |
2.126% |
2.126% |
2.126% |
| Property Taxes Dollar |
$9,592 |
$9,880 |
$10,176 |
$10,481 |
$10,796 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$6,402 |
$6,594 |
$6,792 |
$6,996 |
$7,206 |
| 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 |
$3,483 |
$3,588 |
$3,695 |
$3,806 |
$3,920 |
| 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 |
$19,477 |
$20,062 |
$20,663 |
$21,283 |
$21,922 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,355 |
$15,816 |
$16,291 |
$16,779 |
$17,283 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$28,816 |
$28,816 |
$28,816 |
$28,816 |
$28,816 |
| Principal |
$3,666 |
$3,932 |
$4,216 |
$4,520 |
$4,847 |
| Interest |
$25,149 |
$24,884 |
$24,600 |
$24,295 |
$23,969 |
| Loan Balance at End of Year |
$357,271 |
$353,340 |
$349,124 |
$344,603 |
$339,756 |
| 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 |
$107,436 |
$125,309 |
$143,884 |
$163,195 |
$183,276 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$13,461 |
-$13,000 |
-$12,525 |
-$12,037 |
-$11,533 |
| Monhtly Cash Flow |
-$1,122 |
-$1,083 |
-$1,044 |
-$1,003 |
-$961 |
| Cash on Cash Return on Investment |
-0.052% |
-0.050% |
-0.048% |
-0.047% |
-0.045% |
| 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 |