Montgomery Deal Analysis
Let's look at deal analysis for Montgomery, AL 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 Montgomery, Alabama Rental Property
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Typical 20% Down Payment Montgomery, Alabama Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$114,489
|
|
Purchase Price
|
|
$114,489
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$22,898
|
|
Closing Costs
|
1.000%
|
$1,145
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$0
|
|
Total Invested
|
|
$24,043
|
|
Mortgage
|
|
Mortgage Amount
|
|
$91,591.20
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$1,255
$1254.75
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$452
|
|
Property Taxes
|
0.417%
|
$477
|
|
Property Insurance
|
1.958%
|
$2,242
|
|
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%
|
$17,173
|
|
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 |
$117,924 |
$121,461 |
$125,105 |
$128,858 |
$132,724 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$3,435 |
$3,538 |
$3,644 |
$3,753 |
$3,866 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$1,255 |
$1,292 |
$1,331 |
$1,371 |
$1,412 |
| 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 |
$1,255 |
$1,292 |
$1,331 |
$1,371 |
$1,412 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$38 |
$39 |
$40 |
$41 |
$42 |
| Monthly Gross Operating Income |
$1,217 |
$1,254 |
$1,291 |
$1,330 |
$1,370 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$15,057 |
$15,509 |
$15,974 |
$16,453 |
$16,947 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$15,057 |
$15,509 |
$15,974 |
$16,453 |
$16,947 |
| Annual Vacancy Dollar |
$452 |
$465 |
$479 |
$494 |
$508 |
| Annual Gross Operating Income |
$14,605 |
$15,043 |
$15,495 |
$15,960 |
$16,438 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.417% |
0.417% |
0.417% |
0.417% |
0.417% |
| Property Taxes Dollar |
$477 |
$492 |
$506 |
$522 |
$537 |
| Insurance Percent |
1.958% |
1.958% |
1.958% |
1.958% |
1.958% |
| Insurance Dollar |
$2,242 |
$2,309 |
$2,378 |
$2,450 |
$2,523 |
| 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 |
$1,461 |
$1,504 |
$1,549 |
$1,596 |
$1,644 |
| 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 |
$4,180 |
$4,305 |
$4,434 |
$4,567 |
$4,704 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$10,426 |
$10,738 |
$11,061 |
$11,392 |
$11,734 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$7,312 |
$7,312 |
$7,312 |
$7,312 |
$7,312 |
| Principal |
$930 |
$998 |
$1,070 |
$1,147 |
$1,230 |
| Interest |
$6,382 |
$6,315 |
$6,243 |
$6,165 |
$6,082 |
| Loan Balance at End of Year |
$90,661 |
$89,663 |
$88,593 |
$87,446 |
$86,216 |
| 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 |
$27,263 |
$31,798 |
$36,512 |
$41,412 |
$46,508 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
$3,113 |
$3,426 |
$3,748 |
$4,080 |
$4,422 |
| Monhtly Cash Flow |
$259 |
$286 |
$312 |
$340 |
$368 |
| Cash on Cash Return on Investment |
0.129% |
0.143% |
0.156% |
0.170% |
0.184% |
| 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 |