Kent Deal Analysis
Let's look at deal analysis for Kent, WA 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 Kent, Washington Rental Property
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Typical 20% Down Payment Kent, Washington Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$600,304
|
|
Purchase Price
|
|
$600,304
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$120,061
|
|
Closing Costs
|
1.000%
|
$6,003
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$114,653
|
|
Total Invested
|
|
$240,717
|
|
Mortgage
|
|
Mortgage Amount
|
|
$480,243.20
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$3,145
$3144.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$1,132
|
|
Property Taxes
|
1.145%
|
$6,873
|
|
Property Insurance
|
0.229%
|
$1,375
|
|
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%
|
$90,046
|
|
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 |
$618,313 |
$636,863 |
$655,968 |
$675,647 |
$695,917 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$18,009 |
$18,549 |
$19,106 |
$19,679 |
$20,269 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$3,145 |
$3,239 |
$3,336 |
$3,436 |
$3,539 |
| 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 |
$3,145 |
$3,239 |
$3,336 |
$3,436 |
$3,539 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$94 |
$97 |
$100 |
$103 |
$106 |
| Monthly Gross Operating Income |
$3,050 |
$3,142 |
$3,236 |
$3,333 |
$3,433 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$37,737 |
$38,869 |
$40,035 |
$41,236 |
$42,473 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$37,737 |
$38,869 |
$40,035 |
$41,236 |
$42,473 |
| Annual Vacancy Dollar |
$1,132 |
$1,166 |
$1,201 |
$1,237 |
$1,274 |
| Annual Gross Operating Income |
$36,605 |
$37,703 |
$38,834 |
$39,999 |
$41,199 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
1.145% |
1.145% |
1.145% |
1.145% |
1.145% |
| Property Taxes Dollar |
$6,873 |
$7,080 |
$7,292 |
$7,511 |
$7,736 |
| Insurance Percent |
0.229% |
0.229% |
0.229% |
0.229% |
0.229% |
| Insurance Dollar |
$1,375 |
$1,416 |
$1,458 |
$1,502 |
$1,547 |
| 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 |
$3,660 |
$3,770 |
$3,883 |
$4,000 |
$4,120 |
| 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 |
$11,909 |
$12,266 |
$12,634 |
$13,013 |
$13,403 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$24,696 |
$25,437 |
$26,200 |
$26,986 |
$27,796 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$38,341 |
$38,341 |
$38,341 |
$38,341 |
$38,341 |
| Principal |
$4,878 |
$5,231 |
$5,609 |
$6,015 |
$6,449 |
| Interest |
$33,462 |
$33,110 |
$32,732 |
$32,326 |
$31,891 |
| Loan Balance at End of Year |
$475,365 |
$470,134 |
$464,525 |
$458,510 |
$452,061 |
| 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 |
$142,948 |
$166,729 |
$191,444 |
$217,137 |
$243,856 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$13,645 |
-$12,904 |
-$12,141 |
-$11,355 |
-$10,545 |
| Monhtly Cash Flow |
-$1,137 |
-$1,075 |
-$1,012 |
-$946 |
-$879 |
| Cash on Cash Return on Investment |
-0.057% |
-0.054% |
-0.050% |
-0.047% |
-0.044% |
| 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 |