Richardson Deal Analysis
Let's look at deal analysis for Richardson, 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 Richardson, Texas Rental Property
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Typical 20% Down Payment Richardson, Texas Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$394,268
|
|
Purchase Price
|
|
$394,268
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$78,854
|
|
Closing Costs
|
1.000%
|
$3,943
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$95,274
|
|
Total Invested
|
|
$178,071
|
|
Mortgage
|
|
Mortgage Amount
|
|
$315,414.40
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,678
$2677.50
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$964
|
|
Property Taxes
|
1.826%
|
$7,199
|
|
Property Insurance
|
1.419%
|
$5,595
|
|
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%
|
$59,140
|
|
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 |
$406,096 |
$418,279 |
$430,827 |
$443,752 |
$457,065 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,828 |
$12,183 |
$12,548 |
$12,925 |
$13,313 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,678 |
$2,758 |
$2,841 |
$2,926 |
$3,014 |
| 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 |
$2,678 |
$2,758 |
$2,841 |
$2,926 |
$3,014 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$80 |
$83 |
$85 |
$88 |
$90 |
| Monthly Gross Operating Income |
$2,597 |
$2,675 |
$2,755 |
$2,838 |
$2,923 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$32,130 |
$33,094 |
$34,087 |
$35,109 |
$36,163 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$32,130 |
$33,094 |
$34,087 |
$35,109 |
$36,163 |
| Annual Vacancy Dollar |
$964 |
$993 |
$1,023 |
$1,053 |
$1,085 |
| Annual Gross Operating Income |
$31,166 |
$32,101 |
$33,064 |
$34,056 |
$35,078 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.826% |
1.826% |
1.826% |
1.826% |
1.826% |
| Property Taxes Dollar |
$7,199 |
$7,415 |
$7,638 |
$7,867 |
$8,103 |
| Insurance Percent |
1.419% |
1.419% |
1.419% |
1.419% |
1.419% |
| Insurance Dollar |
$5,595 |
$5,763 |
$5,935 |
$6,113 |
$6,297 |
| 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 |
$3,117 |
$3,210 |
$3,306 |
$3,406 |
$3,508 |
| 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 |
$15,911 |
$16,388 |
$16,880 |
$17,386 |
$17,908 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$15,255 |
$15,713 |
$16,185 |
$16,670 |
$17,170 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$25,182 |
$25,182 |
$25,182 |
$25,182 |
$25,182 |
| Principal |
$3,204 |
$3,436 |
$3,684 |
$3,950 |
$4,236 |
| Interest |
$21,978 |
$21,746 |
$21,498 |
$21,231 |
$20,946 |
| Loan Balance at End of Year |
$312,210 |
$308,775 |
$305,091 |
$301,140 |
$296,905 |
| 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 |
$93,886 |
$109,504 |
$125,737 |
$142,612 |
$160,160 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$9,926 |
-$9,468 |
-$8,997 |
-$8,511 |
-$8,011 |
| Monhtly Cash Flow |
-$827 |
-$789 |
-$750 |
-$709 |
-$668 |
| Cash on Cash Return on Investment |
-0.056% |
-0.053% |
-0.051% |
-0.048% |
-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 |